JC Flowers ARC won the non-performing loan portfolio in an uncontested Swiss auction for Rs 11,183 crore, after Cerberus Capital and Asset Reconstruction Company of India (Arcil) that had teamed up for a bid dropped out of the race, as reported by ET on September 9.
JC Flowers ARC will have to make the payment within 60-days of Yes Bank formally approving the offer. Its earnest money deposit of $50 million (about Rs 400 crore) could be forfeited if it failed to pay within this stipulated time, as per the terms of the auction, said one of the two people.
The deal between the bank and the ARC is under a 15:85 structure, wherein 15% is paid upfront in cash and 85% in security receipts. Effectively, JC Flowers ARC has to mobilise Rs 1,677 crore for cash payment within 60 days