Yes Bank looking to sell Rs 635 cr of non-performing unsecured loans

JC Flowers seeks counter bids to sell Rs 1,290 cr of erstwhile Yes Bank loans

Private sector lender Yes Bank is looking to sell Rs 635 crore of non-performing unsecured loans and has invited expressions of interest (EoIs) by November 4 from entities interested in acquiring the assets. The bank has set a reserve price of Rs 22.80 crore for the assets, which translates to a recovery of just 3.59 per cent. The portfolio includes Rs 307 crore in personal loans and Rs 327.77 crore in credit card loans.

 

Separately, JC Flowers Asset Reconstruction Company (ARC), acting as the trustee of JCF YES Trust, is seeking counterbids on a full cash basis to sell Rs 1,290.18 crore in bad loans from four companies — Carnival Films, Cinema Ventures, Carnival Films Entertainment, and Stargaze Entertainment — through a Swiss challenge auction on November 18, based on anchor bid of just Rs 78 crore, translating to a recovery of just 6.04 per cent.

 

 

The anchor bidder, which has not been disclosed, will have the right to match the counterbid, if any, following which the successful bidder will be declared.

 

These non-performing loans were part of Yes Bank’s portfolio of Rs 48,000 crore, which it sold to JC Flowers ARC back in 2022. The portfolio was purchased by JC Flowers ARC at a consideration of Rs 11,200 crore in a 15:85 cash: security receipts structure, wherein JC Flowers has paid only 15 per cent of the consideration in cash, and the rest was in security receipts. Post-acquisition, the ARC is acting as the manager for the portfolio workout to optimize recoveries. The portfolio consists of non-performing and underperforming large corporate loans with significant real estate and infrastructure assets.

 

Further, earlier this month, JC Flowers sought counterbids for a pool of five non-performing-loan accounts with Rs 1,351 crore total outstanding through a Swiss challenge auction, triggered by a Rs 505 crore of cash anchor bid from Ares Management-backed Assets Care & Reconstruction Enterprise (ACRE). The five companies are linked to the Subhash Chandra-controlled Essel/Zee Group. The Swiss challenge auction for this pool of assets is scheduled on November 6.