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Mukesh Ambani's Reliance, Tata Group and Adanis are the front runners to buy bankrupt firms

After the Tata Steel took over debt-laden Bhushan Steel by paying Rs 352 billion to banks, Tata Power, in a joint venture (JV) with ICICI Ventures, is leading the race to bag Prayagraj Power by offering Rs 60 billion and 15 per cent equity to banks.

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Mukesh Ambani's Reliance group, Tata Group and Adani group are the three major companies that are leading the race to buy the bankrupt firms. According to a report in the Business Standard, these firms are fast emerging winners under the Insolvency and Bankruptcy Code (IBC), 2016. "The Sajjan Jindal-owned JSW Group is also in the race to buy stressed assets, but so far it has had limited success", the report stated. 

Quoting the bankers the report stated that after the Tata Steel took over debt-laden Bhushan Steel by paying Rs 352 billion to banks, Tata Power, in a joint venture (JV) with ICICI Ventures, is leading the race to bag Prayagraj Power by offering Rs 60 billion and 15 per cent equity to banks. 

It further stated that the Adani group is set to take over GMR group’s 1,370-megawatt Chhattisgarh project by offering Rs 38 billion. Besides this, it mentioned that Reliance Industries has emerged the highest bidder of Alok Industries and has already signed an agreement with the Anil Ambani group to take over the beleaguered Reliance Communications’ telecom infrastructure for Rs 181 billion.

Recently, Reliance Communications had completed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 2,000 crore, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).

The transaction entailed 248 nodes covering close to 5 million sq. ft. of area, used for hosting the telecom infrastructure, all of which now stands transferred to Jio, RCom said in a statement.

"Reliance Communications Limited (RCOM) today announced the completion of the sale of its MCNs and related infrastructure assets, worth Rs 2,000 crore, to Reliance Jio Infocomm," the RCom statement read. 

Earlier it was reported that as much as Rs 3 lakh crore worth of loans might come in for resolution under the Insolvency and Bankruptcy Code (IBC) starting early next week. According to RBI's circular, released on February 12 over restructuring bad loans had mandated banks to take loan accounts which remain unresolved for over 180 days, to the National Company Law Tribunal (NCLT) under the IBC.

The deadline for the same ended on August 27. 

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