NARCL acquires Rs 1,000-cr debt of Entertainment City for Rs 711 crore

Mumbai: The National Asset Reconstruction Company (NARCL) has acquired the debt of distressed leisure and retail complex, Entertainment City, after Punjab National Bank (PNB) accepted its ₹711-crore offer, according to sources, ending a year-long attempt by lenders to find a higher bidder.

Noida-based Entertainment City has outstanding debt of about ₹1,000 crore. NARCL's offer amounts to a full recovery of principal for lenders, one of the sources said.

"NARCL will be acquiring the debt and the offer has been accepted by the lead bank," the source said.


PNB was the lead lender and the process was run by PNB Investment Services.

NARCL had first submitted its offer last year, following which lenders attempted to sell the asset on their own. PNB Investment Services, the advisor to the lenders, then ran a Swiss challenge process. But no competing bids emerged. "Nobody came for the Swiss challenge, so NARCL did not have to increase the bid," the source said.

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

As the anchor bidder, NARCL held the right to match any counter offer.