Comments
The Association of Asset Reconstruction Companies (ARCs) in India has raised concerns with the process initiated for the sale of outstanding debt of Vidarbha Industries Power Limited through the Swiss Challenge Process.
In a letter addressed to SBI Capital Market Limited, the Association of ARCs in India has identified various clauses in the document seeking Expression of Interest that made the contest unreasonable.
For example, in the EOI, the lenders to VIPL have issued a disclaimer that they have not verified any information available in the company’s data room. The association said that if the lenders to the company have not verified the veracity of the data then the entire process is unacceptable because the “reliability of due diligence done by the bidders gets negated”
According to sources, the three bidders who have expressed interest for VIPL are all ARCs.
“While the lenders have washed their off basic professional requirements such as providing verified data related to the company, the bidders are expected to bear all responsilibility for the bidding process. Its highly unfair and unprofessional on the part of the lenders,” said a source close to the development.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.