About Asset Care and Reconstruction Enterprise (ACRE)
Asset Care and Reconstruction Enterprise (ACRE) is an Asset Reconstruction Company (ARC) in India that specializes in acquiring non-performing assets (NPAs) from banks and financial institutions. Established in 2002, ACRE has emerged as a key player in the Indian ARC market, providing resolution and recovery services to its clients.
ACRE is backed by Ares SSG Capital, a leading global alternative asset manager with a focus on distressed and special situations investments. The partnership between ACRE and Ares SSG Capital provides the ARC with significant financial and operational support, enabling it to leverage its expertise to help clients navigate complex financial situations.
ACRE's primary objective is to acquire distressed assets and convert them into performing assets by taking a proactive approach to resolution and recovery. The company has a team of experienced professionals who specialize in resolution and recovery, legal and compliance, risk management, and finance. ACRE's expertise and experience in these areas enable it to provide its clients with effective and customized solutions that meet their specific needs.
ACRE has a robust acquisition and resolution process that involves a thorough due diligence exercise, followed by a proactive approach to recovery. The company's team of experts works closely with its clients to understand their specific needs and develop customized solutions that maximize recovery and minimize losses. The company's strong relationships with banks and financial institutions in India further enhance its ability to resolve and recover distressed assets.
ACRE has a diversified portfolio of assets that includes real estate, infrastructure, steel, textiles, power, and telecom. The company has a proven track record of acquiring and resolving distressed assets across these sectors, demonstrating its ability to navigate complex financial situations and provide customized solutions.
Overall, Asset Care and Reconstruction Enterprise (ACRE) is a leading Asset Reconstruction Company in India that provides customized and effective solutions to its clients. With its experienced team, robust acquisition and resolution process, and strong relationships with banks and financial institutions, ACRE is well-positioned to continue its growth trajectory and provide value to its stakeholders.
ACRE makes a binding offer for Visa Steel's debt.
Asset Care and Reconstruction Enterprise (ACRE), an Asset Reconstruction Company (ARC) backed by Ares SSG Capital, has submitted a revised binding offer to the State Bank of India (SBI) to acquire loans extended to Visa Steel. According to two sources familiar with the matter, the move comes as other asset reconstruction companies are also making counteroffers to acquire the loans.
ACRE has raised its offer from ₹230 crore to ₹243 crore, marking a recovery of 35 paise per rupee, as compared to the 33 paise offered during the SBI auction. ACRE was the only bidder at the auction held by SBI on February 10 for loans amounting to ₹697.2 crore extended to Visa Steel, as previously reported by ET on February 24. If ACRE's revised binding offer is accepted, it will trigger a Swiss challenge auction, as per the sale document issued by SBI.
However, Arcil, an Asset Reconstruction Company of India backed by Avenue, has also approached Visa Steel's lenders with a conditional offer of 40 paise per rupee. In response to Arcil's offer, SBI has requested that ACRE submit an improved offer.
ACRE currently holds 23% of Visa Steel's debt, which it acquired from Bank of Baroda and Sidbi in 2019. If any ARC acquires debt in Visa Steel, they would aim to hold at least 66% of the debt to have control over the debt resolution process. For any important resolution, 66% of lenders must vote in favour as per the Insolvency and Bankruptcy Code. SBI, Canara Bank, Punjab National Bank, and Union Bank of India hold 77% of Visa Steel's total loans.
If SBI sells its 22-23% stake in Visa Steel to ACRE, other ARCs, including Arcil, may have little incentive to acquire the debt, according to the sources. In November of last year, Visa Steel was admitted to insolvency, but the High Court of Orissa granted its promoter's petition for an interim stay. ET contacted ACRE and Arcil for comment, but they did not respond.
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