YES Bank picks JC Flowers ARC as base bidder for stressed loan portfolio; stock down 1%

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NEW DELHI: Private lender

on Friday said JC Flowers ARC will be the base bidder for a proposed sale of an identified stressed loan portfolio of the lender aggregating up to Rs 48,000 crore. The announcement, however, could not lift YES Bank shares, which were trading nearly 1 per cent lower in Friday’s trade.

At 10.54 am, the scrip was trading at Rs 13.18, down 0.90 per cent.

In a BSE filing, the lender said: “Pursuant to the enabling approval of the Board of Directors on May 06, 2022, and the final approval from the board credit committee on July 13, the bank signed a binding term sheet with JCF ARC LLC and JC Flowers Asset Reconstruction Private Limited (“JC Flowers ARC”) for strategic partnership in relation to the sale of identified stressed loans of the bank.”

YES Bank said the term sheet has now become effective as of July 15, 2022.

“Accordingly, the bank has decided that the JC Flowers ARC will be the base bidder for a proposed sale of an identified stressed loan portfolio of the bank aggregating to up to Rs 48,000 crore,” YES Bank said.

In accordance with the guidelines issued by the RBI, the bank proposes to run a transparent bidding process on the Swiss Challenge basis for sale of such portfolios using the JC Flowers ARC’s bid as the base bid, it added.