Lenders to Vidarbha Industries Power Ltd (VIPL), a subsidiary of Reliance Power, have appointed SBI Caps as an advisor for the company’s debt resolution process. This comes even as VIPL’s lenders have received interest from three entities.
As per the terms of reference, SBI Caps will formally invite bids for the sale or one-time settlement of the VIPL debt. It will also lay down the evaluation criteria and recommendations for the anchor bidder, banking sources told businessline.
VIPL has over Rs 2,000 crore of outstanding debt. It is learnt that the lenders have agreed to conduct a Swiss Challenge process to maximise the recovery.
September 30 is the deadline for SBI Caps to complete the resolution process.
Reliance Power, the promoter of VIPL, has made a one-time settlement offer to the lenders of VIPL. Reliance Power’s all-cash offer of Rs 1,260 crore is supported by Varde Partners of Singapore.
Ahmedabad-based CFM Asset Reconstruction and NARCL are the other two bidders in the fray.