A group of investors led by the US bank have paid $479 million for soured loans of a beleaguered maker of cast iron pipes
The bank felt the need to have its own asset reconstruction company as current Indian rules restrict overseas investors from buying soured loans directly from lenders in the country.
The move by the lenders is part of an attempt to complete Essar Steel’s sale by the end of March.
While Kapoor stepped aside as CEO in January, tensions between Yes and the regulator have persisted, and it now falls to Gill to ease them.
The elder Ambani could have even more leverage in bidding for the assets of a company whose demise he helped hasten by storming into the mobile phone market in 2016 with free services.
India’s largest lender State Bank of India is reportedly set to swap part of its loans into a stake of at least 15 percent in Jet Airways.
Acquiring Jet Airways’s business could give Tata Group’s fledgling aviation unit a shot at dominating the fast-growing air-travel market.
GAIL India Ltd and Solar Energy Corporation of India have also submitted expression of interest to buy the assets.
A probe by India’s Serious Fraud Investigation Office indicated the lender’s accounts were fraudulent and mismanaged.
Edelweiss Asset Reconstruction Co is setting up a team for that and seeks to start purchases in 2019.