Reliance Industries (RIL) may take over
stressed polyester manufacturer JBF Industries in consortium with CFM Asset
Reconstruction Company (ARC), says a Financial
Express report.
Bankers had
sought takeover bids in July and the Ahmedabad based CFM ARC has put in Rs 8.25
billion bid for the company, that owes its lenders Rs 211.60 billion.
The auction was
in the form of a Swiss challenge, where banks ask interested bidders to increase
the existing bid for an asset. The original bidder gets the right of first
refusal. In case of JBF, the RIL-backed bid by CFM ARC seems the only one.
According
to a bid document, JBF Industries is engaged in the production of PET chips,
which are of bottle grade, textile grade and film grade; polyester yarn, such
as partially oriented yarn, polyester filament yarn, full drawn yarn and other
specialised yarn; and PET films, which are of thin grade, thick grade and
metallised grade. The company defaulted on its debt obligations due to its
weakened liquidity position, according to a rating report by Care Ratings.
In
2020, RIL had acquired a 37.7% stake in textile firm Alok
Industries and had participated in the bidding process for the company in
consortium with JM Financial ARC.
Source:
Financial Express
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