To resolve cases related to bad loans, besides revitalising and turning around over-leveraged borrowers, ICICI Bank has inked an MoU with Apollo India Credit Opportunity Management LLC and AION Capital Management to set up an asset reconstruction company.
The MoU is subject to regulatory approvals, acquisition of debt exposures from lenders and equity stakes in companies.
The collaboration seeks to streamline the operations of borrowers, facilitate deleveraging and arrange additional funding on a case-by-case basis. The motive is to revitalise distressed assets and maximise their economic value. The transactions contemplated by the MoU are subject to the negotiation and execution of definitive documentation and customary closing conditions.