Who is bidding for Gammon India's debt from PNB?

CFM ARC is the anchor bidder for the ₹514 crore debt Gammon India owes to Punjab National Bank.

What is a Swiss auction in this context?

PNB is holding a Swiss auction to find a better price for Gammon India's debt on an all-cash basis.

What is CFM ARC's strategy regarding Gammon India's debt?

CFM ARC aims to consolidate Gammon India's debt, possibly by leveraging real estate assets and tax benefits.

Home / Business and Economy / CFM ARC Bids for Gammon India Debt

CFM ARC Bids for Gammon India Debt

23 Feb

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Summary

CFM ARC is the anchor bidder for Gammon India's debt.
PNB is conducting a Swiss auction for the debt.
CFM aims to consolidate Gammon's debt for resolution.

CFM ARC has positioned itself as the leading bidder for the ₹514 crore debt owed by Gammon India Ltd to Punjab National Bank (PNB). PNB has initiated a Swiss auction to explore opportunities for a higher price on this all-cash offer, which currently stands at ₹140 crore from CFM ARC. This offer implies a substantial haircut of about 73% for PNB on its exposure to Gammon India.

Gammon India's total debt is reported to be around ₹3,800 crore, and it has been a non-performing asset in PNB's books for over a decade. Recovery from EPC companies is often challenging due to limited tangible assets and ongoing legal disputes over payments.