Ashdan's bid beat out eight other bidders, including data center company Cyfuture India Pvt Ltd and Jai Corp vice-chairman Virendra Jain, after creditors scrutinized bids received on an NPV basis.
NPV is the present value of the difference between cash inflows and cash outflows discounted over a period of time. This is used to perform a comparative evaluation of bids involving various elements in the insolvency process.
“After more than a month of scrutiny and evaluation, Ashdan emerged as the top bidder. CyFuture came in second at around Rs 730 million on an NPV basis.The lenders will now negotiate the details and assess the valuation. “We will see if there is room for improvement and then the plan will be put to a vote,” said a person familiar with the process.
Although Lolta is a software company, bidders are valuing the company's real estate properties across India, most of which are held as collateral because the software has little or no value. ing.
This will be the second attempt to find a buyer for Lorta, after only one bid was received during the first process last year. Lolta, promoted by Kamal Singh, is a defense-focused software company that was granted bankruptcy protection in January 2023. The company owes money to banks led by Union Bank. India (UBI) will pay a total of Rs 7.1 billion to holders of unsecured foreign bonds led by Citigroup, and an additional Rs 6,699 million. Ashdan's bid represents a recovery of less than 6% of the total debt, while secured financial creditors led by Union Bank recover about 11%. . Payment details and structure of Ashdan's bid could not be confirmed.
Resolution Professional (RP) Mamta Binani did not respond to an email seeking comment. Ashdan could not be reached for comment.
There were nine bids for Lolta's bankruptcy proceedings, most of which were priced between Rs 500 million and Rs 700 million, ET reported in its December 8 edition. Ashudhan outbid other bidders including Cyfuture India Pvt Ltd and Jai Corp vice-chairman Virendra Jain. Bankers may negotiate further terms with Mr. Ashdan before voting on the plan.
Ashudhan is familiar with the IBC process as the insolvency applicant for the three-member consortium that took over debt-laden real estate firm DS Kulkarni Developers, which received NCLT approval in July last year.
ET reported in early December that creditors had received nine bids by November 30, the last day to submit bids. Other bidders include Rashmi Metaliks Ltd, United Biotech Pvt Ltd, Real Value Infotech Projects Pvt Ltd, Square Four Housing & Infrastructure Development Pvt Ltd, Quant Efficient Ltd and Yash Shares Ltd.
Lolta first defaulted on a foreign currency loan provided by an Indian bank in 2016. The company avoided bankruptcy three times, but was finally admitted to the NCLT last year after a plea from Union Bank, its largest creditor with dues of Rs 2,262 crore. 17% or more of secured creditors.
Ashdan's proposal would yield a recovery rate of less than 6% on total membership fees, but around 22% on the company's 350 billion rupees in principal dues.
Ashdan's bid also compares with the Rs 600 million offered by government-backed bad bank NARCL in November. NARCL's proposal, which includes taking an 85% deposit, has not yet been accepted by all lenders.
