Yes Bank is set to recover about half of its dues from Katerra India by selling loans of the company undergoing corporate insolvency. Prudent ARC on Monday matched a counter-offer by Asset Reconstruction of India (Arcil) for Katerra India at a Swiss challenge auction held by Yes Bank, said people with knowledge of the matter. This will result in the private bank recovering at least half its principal debt, said people with knowledge of the matter. Prudent ARC had given a binding offer of ₹165.6 crore for Yes Bank’s outstanding debt of ₹521 crore to the company, as reported by ET in the last week of January. After this, Yes Bank held a Swiss challenge auction with Prudent ARC’s offer as an anchor offer, giving the ARC the first right to match any counter-offer the private lender would receive. Arcil gave a counter-offer of ₹203.4 crore, which Prudent ARC matched on Monday, the people cited above said. Prudent ARC and Yes Bank are expected to close the transaction this month end, the people said.
Yes Bank, Prudent ARC and Arcil did not respond to ET’s request for comment.
Yes Bank had invited offers from asset reconstruction companies early December for a Rs 4,233 crore distressed loan portfolio. This comprised a corporate loan portfolio of eight accounts with Rs 3,091 crore and retail loans of Rs 1,142 crore.
In September last year, Katerra India, which is engaged in civil construction, was admitted for corporate insolvency at the behest of a petition filed by Yes Bank. The National Company Law Tribunal appointed Pankaj Srivastava as interim resolution professional.
Yes Bank, which is the only secured lender, had filed a claim of Rs 516 crore. However, the RP has admitted Rs 453 crore, according to the disclosures made by the company. The RP has admitted Rs 525 crore claims from Yes Bank, trade creditors and employees.
Katerra is engaged in offsite construction technology and solutions including precast, prefabricated structures, joinery and aluminium glazing catering to various corporates and real estate developers. The company has a fully integrated manufacturing facility at Industrial Park in Krishnagiri (Tamil Nadu).
