LIC: LIC places Rs 613-crore KSK Mahanadi debt on the block

Mumbai: The Life Insurance coverage Company (LIC) of India has lastly entered the bad-loan market.

The state-owned insurance coverage firm has invited bids for its ₹613-crore debt publicity to KSK Mahanadi Energy after it acquired an anchor supply from Uncommon ARC, two folks conscious of the event advised ET.

A suggestion of ₹188 crore from the Ahmedabad-based ARC has triggered a Swiss problem public sale, and on Wednesday, LIC invited counter provides from different ARCs, the folks stated. Uncommon ARC, being an anchor bidder, could have the primary proper to match the counteroffer.

Within the two years, LIC has explored the potential of promoting a few of its distressed loans 3 times to ARCs however has referred to as off the workouts with out clarification to the bidders.

Nonetheless, this time, a deal is about to be closed, stated folks cited above. “A Swiss public sale implies that the vendor has agreed to promote the loans to the anchor bidder and is just exploring the potential of getting a greater supply,” stated an official from an ARC.

Uncommon ARC and LIC didn’t reply to ET’s request for feedback.

On Wednesday (November 2), Capital Markets & Securities (IDBI Caps), on behalf of its shopper – an insurance coverage firm – invited counteroffers from ARC for a Swiss public sale triggered for the debt KSK Mahanadi Energy. IDBI Caps didn’t point out the identify of the shopper and the anchor supply.

IDBI Caps said that candidates can submit expressions of curiosity by November 7. In July 2021, LIC invited provides to promote 16 distressed loans amounting to ₹8,091 crore. Nonetheless, after receiving agency bids, it didn’t proceed with promoting the accounts.

This 12 months too, LIC invited provides for the sale of its ₹3,400 crore debt to

twice however didn’t go forward with the sale, as reported by ET on August 22.

Mid-August, the

offered its ₹5,058 crore admitted claims of KSK Mahanadi Energy to Aditya Birla ARC for ₹1,622 crore in an all-cash deal. It’s the single largest distressed mortgage sale on an all-cash foundation between a financial institution and an ARC.

KSK Mahanadi has been present process insolvency proceedings since October 2019, however the sale course of has been delayed as a consequence of a collection of litigations.

A number of different lenders, resembling

, and have offered their debt to ARC during the last two years.