June 28, 2022


the blog news

VVF India: Phoenix ARC in talks with banks to amass VVF India loans

Kotak Mahindra Financial institution-backed Phoenix ARC is in talks with banks to amass loans of VVF (India) Ltd, makers of non-public care merchandise resembling Doy Care and Jo, mentioned two individuals conscious of the event.

Phoenix ARC has, final week, supplied Rs 105 crore to Financial institution of India for its Rs 210 crore loans to VVF (India).

The supply, which equates to a restoration of fifty% for the state-owned financial institution, has triggered a Swiss problem public sale which is scheduled for April 30. VVF (India) has borrowings of Rs 1,400 crore, in accordance with a credit standing report by Crisil Ltd.

Final week, Financial institution of India invited bids for Rs 188.3 crore of fund-based and Rs 22 crore of non-fund-based, resembling financial institution ensures and letter of credit score, publicity.

Phoenix ARC didn’t reply to ET’s request for remark.

The corporate was admitted for insolvency proceedings final September following a petition filed by Financial institution of India. Nevertheless, inside a month, the appellate authority ordered a keep on the formation of a committee of collectors, following an enchantment by the corporate that it was in talks with lenders for an out-of-court settlement.

Unlisted VVF (India) is at present run by second-generation promoters Rustom Joshi, Shanaz Diwan and Faraz Joshi.

If it acquires Financial institution of India’s loans, Phoenix ARC would have a 30% share of the corporate’s loans. Previously, it had acquired VVF (India)’s loans from IDBI Financial institution and Axis Financial institution. The corporate’s different lenders embody State Financial institution of India, Punjab Nationwide Financial institution, Central Financial institution of India and Financial institution of Baroda. Its financial institution services have a cost on holding firm VVF Ltd’s belongings, which embody land holdings in Mumbai.

See also  ncpcr: Jahangirpuri violence: NCPCR seeks registration of FIR towards those that concerned youngsters

VVF (India) makes fatty oils, fatty alcohols and glycerine, which contribute to round 60% of the overall income, in accordance with a ranking report by Crisil. It’s amongst giant producers of oleochemicals with a unit at Taloja, Maharashtra. It additionally undertakes contract manufacturing of non-public care merchandise at its vegetation in Baddi, Himachal Pradesh; Kolkata; and Daman.