JM Financial ARC top bidder for Rs 971-cr DLI debt

Mumbai: JM Financial ARC has emerged as the preferred bidder to take over the ₹971 crore debt of Distribution Logistics Infrastructure (DLI) with a cash bid of ₹621 crore. The bad loan aggregator has already paid the 10% earnest money deposit (EMD) in the case, the first step to take over the asset.

“Lenders had put up these loans for sale after an earlier attempt to settle the debt with the promoters fell through. The process will take some more time to be completed but JM Financial ARC has been declared as the anchor bidder,” a person familiar with the details said on condition of anonymity.

Queries emailed to JM Financial ARC and process advisor BoB Capital Markets did not elicit a response till press time.JM Financial ARC’s offer envisages a recovery of about 64% for the lenders led by Bank of Baroda (BoB). Other creditors include Punjab National Bank, Union Bank of India, Bank of India and State Bank of India. BoB is the largest creditor with about 42% of the debt. “JM Financial ARC has likely placed the bid in partnership with a large steel-to-auto conglomerate, which is also building its own logistics business,” said a second person with knowledge of the matter.