Parekh Aluminex sold at 67% haircut, NCLT yet to approve deal: Report

Parekh Aluminex, which is in the Central Bureau of India (CBI) net for defaulting on Rs 4,000 crore worth of loans from a consortium of banks, has found a buyer at 67 percent haircut, DNA reported.

Distressed assets investor Eight Capital Management has offered Rs 1,400 crore for the troubled Mumbai-based company.

The aluminium rolls manufacturer has unpaid loans amounting to Rs 4,000 crore - the bulk of which Rs 2,297 crore is owed to Indian Overseas Bank, and Rs 390 crore to Federal Bank and Axis Bank, the Enforcement Directorate (ED) said.

Further, the company was found to have diverted loan amounts to the tune of Rs 1,557.45 crore, sanctioned for manufacturing, towards non-manufacturing related activities for personal benefits.

The case is with the National Company Law Tribunal (NCLT) and the deal is yet to get the tribunal's nod. Sources told the paper the deal is likely to go through. Moneycontrol could not independently verify the report.

CBI filed six criminal charges against the company while the economic offences wing of the Mumbai Police also filed a similar complaint.

The ED conducted searches at multiple locations linked to Parekh Aluminex and its promoters in Mumbai under the Prevention of Money Laundering Act (PMLA) in June. They also attached property worth Rs 46.97 crore linked to the company at the outskirts of Hyderabad.