Mumbai: Jindal (India)’s bid for Kishore Biyani’s debt-laden Future Enterprises (FEL) amounts to ₹301 crore, or less than 3%, of the total ₹12,265-crore loan exposure, making it almost irrelevant to the lenders, people familiar with the process said.
Banks are still scrutinising the offer but such a low bid leaves little room for negotiation and lenders will have to find alternatives to ensure any meaningful recovery from the account, these people said.
“The bid is so low that it is not even worth talking about,” said one of the persons cited above. “Though banks have not yet scrutinised the details of the bid, such a low value offer has left everyone disinterested. There is no point in even negotiating for a better value from the bidder, so other options will have to be considered,” said the person.
Kolkata-based steel tubes and pipes maker Jindal (India), part of the BC Jindal Group, had emerged as the sole bidder for FEL after a more than eight-month process, ET had reported on November 13. FEL owes creditors led by Central Bank of India and its arm Centbank Financial Services a total ₹12,265 crore, the second largest debt pile from the defunct retail giant Future Group. Though shocked by the low value ascribed by Jindal, banks still have time in hand as the NCLT had extended the resolution timeline for the company till March 2024. Lenders said they will assess the options in light of the disappointing Jindal bid.
