JM Financial Asset Reconstruction Company has emerged as the sole bidder for bankrupt textile company Alok Industries, while London-based Liberty House remains the only bidder for bankrupt ABG Shipyard even after the second round of bidding. In another development, Malaysia’s IHH Healthcare Bhd is set to launch a voluntary open offer to buy the non-promoter shares of Fortis Healthcare.
JM Financial sole bidder for Alok
The National Company Law Tribunal initiated insolvency proceedings against the company in the middle of the last year. The company owes Rs 29,000 crore to creditors including State Bank of India, Punjab National Bank, Bank of Baroda, IDBI Bank, Standard Chartered Bank and DBS Bank.
However, lenders fear losing as much as 85 per cent of the outstanding loans as the bid is expected to be below the liquidation value, pegged at Rs 4,200 crore, the report said.
The last day to submit the bid was Friday. Despite extended deadline, the official appointed by the National Company Law Board received only one bid to resolve the debt crisis at the Mumbai-based company.
Malaysia’s IHH to make open offer for Fortis
Yes Bank acquired 17.3 per cent stake in Fortis Healthcare to become the largest shareholders after the Fortis’ promoter group comprising Malvinder and Shivinder Singh defaulted on loans a few months ago. The remaining stake in the company is held by public and other institutional shareholders.
IHH is unlikely to seek to acquire the promoters’ shares for now, said the report quoting sources. The hospital chain has roped in investment bank Citi to advise on the process and is preparing a $1 billion war chest to fund the share purchase.
As per the recent media reports, Manipal Health Enterprises is also planning to acquire Fortis Healthcare, and TPG will be investing in the hospital chain through the acquisition. If acquired by Manipal, the resultant entity Fortis Healthcare and Manipal Health Enterprises will become India’s largest medical services group.
The current market cap of Fortis is Rs 7,909.52 crore. The company is currently facing several inquiries related to accounting misappropriation.
Liberty House only bidder for ABG Shipyard
The first bidding round too saw only Liberty House emerge as a bidder, which is why the resolution professional initiated the second round to avoid charges of lack of transparency.
ABG Shipyard is among the list of 12 large companies that the RBI had identified in June for banks to refer to the bankruptcy court. The resolution professional had set March 9 as deadline for bidding to revolve the Rs 18,245 crore default to financial creditors.