Lenders To Recover 18% Of Dues By Selling Wind World (India) To NARCL

The National Asset Reconstruction Company (NARCL), backed by the government, has been declared the successful bidder for the majority of Wind World's (India) debt in an uncontested Swiss challenge auction held by lenders on Monday, according to sources, . NARCL offered Rs 670 crore to acquire Rs 3763 crore debt from lenders, which equates to an 18 per cent recovery rate. The offer included a 15 per cent cash consideration and the remaining balance in the form of security receipts (SR) payable on loan recovery. The sale notice did not name the ARC.

Several lenders, including IDBI Bank, State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India, Central Bank of India and Axis Bank, have agreed to sell their loans to National Asset Reconstruction Company (NARCL) for Wind World (India), a company admitted for corporate insolvency in 2018.

Previously, Suraksha ARC, Suraksha Realty and Lakshdeep Investments had emerged as the winning bidder, but they later withdrew their offer. The lenders challenged this move, but it was approved by the National Company Law Tribunal (NCLT). 

Now, NARCL has offered to buy 79 per cent of Wind World (India)'s debt in a combination of cash and security receipts (SR). This offer is different from the earlier bid made by Omkara ARC, which was in cash and covered the entire debt. JC Flowers ARC also evaluated the company but did not submit a bid.

The resolution process for Wind World (India) was delayed by a series of litigation and limited progress during the lockdown due to Covid-19. The company's resolution professional, Shailen Shah, has admitted claims amounting to Rs 6,147 crore, out of which Rs 4,530 crore are from secured lenders. 

State Bank of India (SBI) filed the highest claim of Rs 1,209 crore, followed by IDBI Bank with a claim of Rs 1,119 crore. According to media reports, a dispute between joint venture partners, Germany's Enercon GmbH and the Yogesh and Ajay Mehra brothers of Wind World (India), led to a financial crisis in the company.