Adani Ports, JSW Infra In Queue To Acquire Arshiya Undergoing CIRP
Punjab National Bank had sought insolvency proceedings against the company after it defaulted on Rs.193 crore dues;
Adani Ports, JSW Infra In Queue To Acquire Arshiya Undergoing CIRP
Punjab National Bank had sought insolvency proceedings against the company after it defaulted on Rs.193 crore dues
A diverse group of companies including Adani Ports and Special Economic Zone, JSW Infrastructure, Horizon Industrial Parks and Transindia Real Estate Ltd are keen on acquiring listed supply chain and logistics infrastructure firm Arshiya Ltd.
Mumbai-based Arshiya is undergoing a Corporate Insolvency Resolution Process (CIRP), with Pankaj Mahajan as its resolution professional (RP).
Investors including Authum Investment & Infrastructure Ltd, Dickey Alternative Investment Trust and Finquest Financial Solutions Pvt Ltd have also evinced interest in the company.
Arshiya has over Rs.6,647 crore in liabilities, including Rs.3,082 crore from secured financial creditors and Rs.23,544 crore from unsecured financial creditors.
The company provides unified supply chain and integrated logistics infrastructure solutions and develops, operates and maintains free trade and warehousing zones.
The only free zone developer operating two free-trade warehousing zones (FTWZs), it is the largest private container train operator with pan-India operations. The company owns the only private inland container depot with six rail loop lines.
The bidders are interested in the company due to its large assets at strategic locations. Its container yard has an approximate storage capacity of 6,000 containers and seven warehouses with a combined leasable area of about 1.16 million sq. ft.
Arshiya was admitted under CIRP in April last, following an application by its lender Punjab National Bank after defaulting on Rs.193 crore dues.
Commenting on the subject, Sudip Mahapatra, a Partner at S&R Associates said companies with real physical assets undergoing CIRP are attractive targets for many reasons.
He continued, "Firstly, the physical assets will not lose value during insolvency. Secondly, the debt can be brought down to a sustainable level through the Insolvency and Bankruptcy Code (IBC) process to make the business viable.”
"Companies with real assets therefore tend to see more interest from bidders. Also, given the massive growth in India's consumption story, there is a significant interest in the logistics sector," Mahapatra added.
