NARCL makes fifth exit with Rs 575 crore recovery

MUMBAI: National Asset Reconstruction Company Ltd. (NARCL) has recovered more than Rs 575 crore from the resolution of Agson Global, according to people aware of the matter, marking its fifth successful exit from a stressed-loan account.

Agson Global, a manufacturer of aroma ingredients, was admitted to insolvency proceedings by the National Company Law Tribunal following a petition filed by the erstwhile Allahabad Bank, now part of Indian Bank.

NARCL, the state-backed "bad bank", had acquired Agson Global's debt at a steep discount, said one of the people cited earlier.


The recovery enabled NARCL to fully redeem the security receipts (SRs) issued to lenders and also distribute an additional nearly Rs 200 crore to the banks.

"NARCL has recovered about Rs 575 crore against a recovery cost of around Rs 360 crore. Not only were all SRs redeemed, but banks also received substantial upside," the person said.

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This makes Agson Global the fifth stressed-loan asset after Wind World India, Metenere, Helios International and SSA International from which NARCL has successfully exited.

A spokesperson for NARCL did not immediately respond to ET's request for comment.

The recovery from Agson Global follows a refinancing transaction backed by alternative credit investor Neo Asset Management. Part of the funding of more than Rs 300 crore was arranged by Neo Group and priced at 18-20%, according to another person.

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The account had an overall debt outstanding of over Rs 2,000 crore.

Among the largest recoveries, Wind World India had a debt outstanding of nearly Rs 8,800 crore. NARCL had acquired the exposure for about Rs 677 crore and exited with recoveries of around Rs 1,225 crore.

In Metenere, where the debt outstanding was about Rs 4,800 crore, NARCL acquired the exposure for Rs 257 crore.

Helios International, with a debt of roughly Rs 2,000 crore, was acquired for about Rs 62 crore and yielded around ?93 crore in recoveries.