In a new twist to the RTIL bidding drama, the employees, who had joined hands to revive the company, have now roped in Gujarat-based CFM Asset Reconstruction (CFM ARC) as a new investor.

The new bidder has been brought in after the application of Hong Kong-based investor SPGP Holdings (HK) Ltd was dismissed by the National Company Law Tribunal for failing to submit the earnest money deposit (EMD).

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.

CFM ARC’s board includes veteran banker Avinash Mahajan, Arvind Bhanusuali (Chairman and Managing Director of Yash Group of companies), Subhash Bhargava (Chairman of AK Capital Services and OTC Exchange of India) and Sudhir Vasudeva (former Chairman and Managing Director of ONGC) among others. Shashikant V Shah is the CEO of the company.

At its hearing on Tuesday, NCLT also asked CRM ARC to deposit at least ₹2 crore as EMD within 48 hours after the tribunal dismissed SPGP Holdings’ bid.

On Monday, the tribunal, which had sought an EMD of ₹50 crore from SPGP to qualify for submitting the resolution plan, asked the HK-based investor to state the amount of EMD it could deposit. With the ouster of SPGP Holdings, there are still two suitors for the bankrupt firm.

Last week UK-based Boustead Plc had expressed its interest to bid for RTIL.

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