Acre ARC wins bid to take over Essel Groups’ bad loans

7 December 2024

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Acre ARC has emerged because the profitable bidder to take over the ₹1,350 crore debt of Subhash Chandra‘s Essel Group and in addition ₹2,613 crore debt of a portfolio of retail and SME loans from JC Flowers ARC (JCF) because the $378 billion Ares SSG backed dangerous mortgage aggregator consolidates its portfolio in India.

In each circumstances, Acre had submitted an anchor bid which has not been challenged. Acre had bid ₹237 crore binding bid at 9% all money to accumulate ₹2,613-crore debt for a portfolio of retail and SME loans, which was purchased from Yes Bank by JCF whereas it had submitted a ₹505 crore bid to accumulate 5 non-performing mortgage (NPL) accounts related to Subhash Chandra’s Essel Group in opposition to complete excellent debt of ₹1,350 crore in October. An Acre spokesperson confirmed that they’ve emerged because the profitable bidders in each circumstances. JCF didn’t reply to an e-mail in search of remark.

The Essel linked loans included NPLs from 5 Essel Group entities particularly Pan India Community Infravest, with ₹727 crore of complete excellent, Taleem Analysis Basis with ₹379 crore complete excellent, Mount Litera Schooling Basis with ₹114 crore excellent, Zee Be taught Schooling Society with ₹98 crore and Gyanmala Public Schooling Belief with ₹34 crore complete excellent loans, ET had reporte in October.

The 5 accounts had been additionally a part of the portfolio of Sure Financial institution loans transferred to JCF in December 2022.

Essel Group owed ₹6,500 crore to Sure Financial institution, which had been transferred to JCF as a part of the ₹48,000 crore harassed loans the financial institution offered to the dangerous mortgage aggregator.