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Gujarat-based CFM Asset Reconstruction (CFM ARC), the latest investor to join bid for debt-ridden RTIL (formerly Reid & Taylor (India) Ltd), has submitted ₹2 crore as partial Earnest Money Deposit (EMD).
This follows a directive by the Mumbai bench of the National Company Law Tribunal (NCLT) to CRM ARC to deposit at least ₹2 crore as EMD within 48 hours, following the dismissal of Hong Kong-based SPGP Holdings’ bid. The new investor will now be given two weeks to complete the due diligence process.
On Thursday, the tribunal also directed CFM ARC to participate in the resolution process as a sole bidder and directed the resolution professional to provide required data after the investor signs a non-disclosure agreement (NDA).
The new investor has to make a further deposit of ₹3 crore at the time of submitting the resolution application. The next date for hearing is January 31.
CFM ARC, with its registered office in Ahmedabad, has acquired non-performing assets (NPAs) of more than ₹750 crore as of March 2018 and over ₹1,200 crore till December 2018. The company’s net owned funds stands at about ₹102.57 crore, according to financial papers submitted with the NCLT’s Mumbai bench.
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