Six ARCs show interest in DLI Logistics' ₹923-cr debt

Mumbai: Several asset reconstruction companies ( ARCs) including Edelweiss ARC, ACRE, CFM ARC, Arcil, Rare and Prudent ARC have shown interest in participating in the bid process for DLI Logistics Ltd, according to people familiar with the matter.

The process follows a one-time settlement (OTS) proposal submitted by the company's promoter, who has offered ₹590 crore against the outstanding principal of ₹695 crore.Based on this anchor offer, lenders have invited binding bids from ARCs on a 100% cash basis.

The consortium-comprising Bank of Baroda, Punjab National Bank, Union Bank of India, Bank of India, ARCIL and State Bank of India-has a total outstanding exposure of ₹923 crore to DLI. BOB Caps is acting as the process advisor for the transaction.

The lenders will conduct a Swiss challenge auction on October 27, with the H1 bidder expected to be announced the same day, though one source indicated the process could be delayed slightly due to the Diwali holidays. The reserve price for the bid has been set at ₹590 crore, while the minimum bid price stands at ₹619.50 crore as the minimum markup is 5%, or about ₹29.5 crore.

DLI, formerly known as Vikram Logistics & Maritime Services, is a multimodal integrated logistics service provider.

"Offers for such loan accounts where settlement is initiated by the borrower or promoter and then offered for sale to ARCs improves transparency in price discovery and often results in higher recoveries for banks," said Pradeep Goel, managing director, Prudent ARC.