Distressed Assets

Edelweiss Alternative on Tuesday said it is targeting to raise USD 1 billion (about Rs 8,000 crore) in its third distressed asset fund, eyeing strong opportunities in the space. The company has already raised USD 425 million or Rs 3,400 crore for the third 'Special Situations Fund' (SSF III) from large insurance companies and pension funds globally, as also domestic high net individuals and family offices, it said in a statement. Under an SSF, the company focusses on asset heavy companies and identifies viable underlying businesses that have a strong turnaround potential, or invest in situations where resolution of asset requires capital and domain expertise, it said. In the second fund launched in 2018, it invested Rs 10,500 crore and realised cash of more than Rs 9,500 crore from the portfolio companies, it said. Under the latest fund, it is targeting to raise USD 1 billion with a greenshoe option of USD 500 million, the statement said. Of the Rs 3,400 crore raised till now for

In July, NARCL had proposed to take distressed assets of 17 firms worth Rs 93,249 crore including included five firms of the Future Group

India's banking sector is faced with the predicament of a "massive asset-liability mismatch" that could explode anytime, adding that there is a need to reassess laws governing the industry, renowned economist Pronab Sen said. Sen said "that explosion" has not yet happened as most of the banks are in the public sector. Explaining the situation, he said the Indian banks had adopted the British model, and the laws don't allow lenders to borrow from the capital market, which essentially makes deposits the only source of funds. "Today, the average tenure of bank lending is about nine years, and deposits' tenure is close to two-and-a-half years. So, you have nine years on the asset side, and 2.5 years on the liability side... which means there is a massive asset-liability mismatch which can explode anytime," the former chairman of the statistical commission said here while delivering a lecture at the 7th anniversary celebrations of Bandhan Bank on Monday night. "It hasn't happened becaus

The four distressed accounts include Subhash Chandra-promoted Siti Networks

The pile-up of bad loans is a pain point and the pressure is mounting, said Rishabh Goel

Markets regulator Sebi is planning to carve out a separate category in Alternative Investment Funds (AIF) whereby such entities can purchase distressed loans from banks and NBFCs.

With the Supreme Court vacating the one-year breather on the filing of insolvency proceedings, it's back to the grind on the bad-loans front

The JCF Fund will be set up as an umbrella variable capital company (VCC) in Singapore to aggregate contributions of international investors for investment in distressed companies in India

Without beefing up the regulatory framework, moral hazard may outweigh advantages, say experts

AIFs are Sebi-registered entities to make investment on behalf of sophisticated investors.

Bankers expect bad debt worth $35 bn to be up for grabs, in addition to $110 bn already in the system; Blackrock, SBI Cap, Brookfield eyeing stressed assets

The Insolvency and Bankruptcy Code has been in force for four years and provides for a time-bound and market-linked resolution framework for stressed assets

KAUSHIK SHAPARIA, chief country officer of Deutsche Bank in India, spoke to Raghu Mohan about the bank's local ambitions

The Securities and Exchange Board of India (Sebi) said bids can be submitted by February 10, 2020

The size of the distressed asset fund is expected to be on the lines of the government of India-backed AIF for distressed housing projects

In sectoral terms, over 80% showed preference for metals, chemicals, pharma, cement and discrete manufacturing