NARCL acquires Kay Bouvet Engineering debt.
National Asset Reconstruction Co Ltd (NARCL) is set to take over the Rs 1,000 crore debt of Kay Bouvet Engineering, marking a significant move in debt recovery for banks.
Kay Bouvet Engineering, a manufacturer of specialized equipment for strategic sectors, faced challenges leading to this debt restructuring.
Banks initiated a bidding process, seeking offers for the debt, with an initial offer of Rs 130 crore. However, no other bidders emerged, leading to NARCL’s acquisition.
This acquisition enables banks to recover approximately 13% of the outstanding debt. The deal underscores the role of asset reconstruction companies in resolving distressed assets in the Indian financial system.
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