standard chartered bank: StanChart sells distressed loans to HNG, Chenani Nashri Tollways
The bank has sold $40m (equivalent to around ₹310 crore) debt exposure to Deutsche Bank under the Toll Lanes Project, promoted by IL&FS Group, the people quoted above said . The principal outstanding debt for the Kolkata-based Hindusthan National Glass (HNG) account was ₹59 crore.
Recovery on the HNG loan was around 40-45%, while that on the road project was around 75-80%. Standard Chartered India Operations sold both loans for an upfront cash payment.
Standard Chartered Bank and Deutsche Bank declined to comment. UV ARC did not respond to ET’s questions.
Standard Chartered Bank is looking to sell its $1.6 billion distressed loan portfolio, ET reported on June 22. The portfolio is worth ₹12,500 crore, comprising 57 business loan accounts. It is one of the largest pools of non-performing assets (NPA) sold in a single block by a bank.
The bank is seeking cash offers from asset reconstruction companies, said a briefing note released by the lender. He said potential buyers would have to bid for the entire portfolio and picking would not be allowed.
Mukul, promoter of glass bottle maker HNG, offered to settle outstanding loans to emerge from insolvency proceedings. The company offered ₹1,380 crore to the lenders under Section 12A of the Insolvency and Bankruptcy Code. This provision gives courts the power to withdraw a claim from insolvency proceedings if 90% of lenders by value agree. The promoters’ offer is equivalent to a takeover of 41%.
Over the past six months,
and sold their Chenani Nashri Tollways loans to Assets Care and Enterprise Ltd, and ARC, respectively. Both trades were made within a range of 75 to 78 paise on one rupee. Standard Chartered sold its external commercial borrowings to Deutsche Bank in April.
Chenani Nashri Tollways has a total debt of ₹5,454 crore, of which ₹4,195 crore is from lenders, and the balance of ₹1,295 crore is from IL&FS group companies.