No fresh bids at ‘Swiss Challenge’ process
BBN Bureau
MUMBAI/September 21-2022: Having completed the due processes, Yes Bank’s board on September 20 approved the sale of stressed loans of $6 billion (approx Rs48,000 crore) to JC Flowers Asset Reconstruction Pvt Ltd (JC Flowers ARC).
JC Flowers ARC was the base bidder for the proposed sale of an identified stressed loan portfolio of the bank aggregating up to Rs48,000 crore. JC Flowers is understood to have submitted an initial bid of Rs11,183 crore (Rs111.83 billion.
“The bank had used such bid of JC Flowers ARC as a base bid (Base Bid) to conduct a transparent bidding process on Swiss Challenge basis under the aegis of the Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021, dated September 24, 2021, for inviting challenger bids for sale of Identified Portfolio,” a Yes Bank statement added.
The Swiss Challenge process has now concluded and Yes Bank not having received any Challenger Bids to the Base Bid, the Board of Directors of the Bank, at its meeting held on September 20, 2022, has approved the declaration of JC Flowers ARC as the winner of the Swiss Challenge process.
Yes Bank had invited bids for its bad assets portfolio soon after the RBI in March 2021 rejected its plan to set up an ARC as its subsidiary.
