Sale of Large Steel Company under NCLT Liquidation

Sale of Large Steel Company under NCLT Liquidation

Situation at the time R3 stepped in

  • Multiple auctions without any success
  • Valuation was too high and unsustainable in view of bidders
  • Also there were three companies for which no single buyer was ready
  • Liquidator needed assistance to attract potential buyers
  • At this stage R3 was appointed as 'Sale side Advisor' by the Liquidator

R3 Value Addition

  • Formulation of Strategy - Convinced liquidator team to put the auction under separate buckets for three companies as well as port stock
  • Also, decided as a strategy to take forward private sale with permission of NCLT as multiple auctions failed in the past
  • Discussed with many potential bidders in India and abroad
  • One to one meetings with the potential bidders to apprise them of the asset/ business
  • Successfully attracted 2 buyers who submitted bid

End Result

  • One of the two potential buyers successfully acquired the asset (flagship company out of the three companies)
  • Subsequently, other company also was acquired by another buyer
 
     
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