National Asset Reconstruction Company of India Ltd (NARCL) is preparing to acquire 18 distressed accounts totalling Rs 39,921 crore by October 31, The Economic Times reported on September 19, citing two people aware of the development. This follows directions from senior finance ministry officials to government-owned banks at a meeting held last week, it said.
NARCL informed lenders on September 16 that it has created two lists – Phase 1 comprising eight accounts with debt of Rs 16,744 and Phase 2 having 10 accounts with a debt of Rs 18,177, the report said.
As per the report, Jaypee Infrastructure, Meenakshi Energy, Mittal Corp, Rainbow Papers and Consolidated Construction Company are among the eight companies in phase one. Coastal Energen, Rolta and McNally Bharat Engineering are part of phase two.
Moneycontrol could not independently verify the report.
Sources told ET that the government-owned ARC has hired EY, PwC, Alvarez and Marsal, KPMG, Grant Thornton as consultants to conduct due diligence, before finalising bids for these 18 accounts.
Reportedly, a third list will shortly be issued, comprising the twin Srei companies, a few Future Group companies and VOVL, the oil and gas exploration company of Videocon Industries. The NARCL, bad bank promoted by the government, aims to consolidate bad loans from lenders and resolve them through a debt management firm.