InvestorQ : What are the details of the Yes Bank tie-up with JC Flowers for the ARC business?
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What are the details of the Yes Bank tie-up with JC Flowers for the ARC business?

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rhea Babu answered.
3 weeks ago
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Yes Bank has reportedly selected JC Flowers ARC (asset reconstruction company) as its partner to form an ARC to which it will sell its massive pile of bad loans worth Rs48,000 crore. Yes Bank has apparently already signed a binding term sheet with JCF ARC LLC and JC Flowers Asset Reconstruction to work together to ensure that they are able to find willing buyers for the Rs48,000 crore stressed loan book. The term sheet is already effective as of this Friday and the detailed plan is likely to be rolled out soon.

As per the agreement, it has been decided that JC Flowers ARC will be base bidder for a proposed sale of an identified stressed loan portfolio of the bank worth Rs48,000 crore. As per the RBI guidelines, Yes Bank will run a transparent bidding process on the lines of the Swiss Challenge for the sale of such portfolio using JC Flowers ARC’s bid as the base bid. This is a novel experiment in the Indian context and remains to be seen how it really pans out in practice.

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