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"In a meeting held today lenders asked CFM ARC to improve the bid amount to ₹1,265 crore from ₹1,220 crore and close the transaction," said a bank source. "CFM ARC has deposited the entire amount in two tranches by the end of the day."
The Reliance Asset Reconstruction Company (RARC), a subsidiary of Reliance Capital Ltd., has challenged the Reserve Bank of India's Master Circular on the Swiss Challenge Mechanism as being discriminatory, unjust and arbitrary.
In its petition, Reliance ARC has raised concerns over the Swiss Challenge Auction process, according to a lawyer source. The concern is that when an ARC makes a bid to buy a troubled asset or a nonperforming asset (NPA), it automatically becomes an initial bidder and this gives the ARC the exclusive right to match any bid that comes in during the Swiss Challenge Process, the lawyer explained.
The current rules governing the Swiss Challenge process are lopsided, favouring the anchor bidder, and stymie the basic objective of value maximisation by the lenders of a stressed asset.This is the opinion of various banking and industry ...
The Committee of Creditors (COC) of Reliance Capital, which met on Friday to decide on the Challenge Mechanism process, remained divided and undecided on the modalities of the proposed process to be adopted in the bidding process.The COC failed ...