ARCs Compete for ACCIL Corp's Debt with Jaipur Hotel Offers

Asset reconstruction companies (ARCs) are lining up for the bankrupt ACCIL Corp's ?270 crore debt in what is turning out to be a rare 100% recovery for banks. The asset in question is an ACCIL-owned hotel in Jaipur, which has been put on block by lenders to recover their dues. Last month, Omkara ARC beat competitor Asset Reconstruction Company of India (Arcil) with a ?38 crore cash offer to Chennai-based Indian Bank in a Swiss challenge. Separately, Arcil has emerged as the preferred bidder to take over the ?113 crore debt owed to Union Bank of India, the lead lender in the case. ACCIL Corp owns the 170-room hotel in Jaipur, which is being managed under the Holiday Inn franchise. Interest in the property is strong because it's a hotel in working condition in a city frequented by tourists. Besides the Indian Bank and Union Bank, other creditors to the company are the Central Bank of India and the Indian Overseas Bank (IOB). Omkara's bid of ?38 crore for Indian Bank includes full principal payment together with some interest dues. Similarly, Arcil has also agreed to pay the full principal amount in its offer to Union Bank, which is the largest creditor in this case. It is unclear as to what other lenders Central Bank and IOB are planning with their debt.