Union Bank of India (NSEI:UNIONBANK) has received bids for four stressed loans worth more than INR 5,200 million from ACCIL Corporation, SDB Developers, Jaypee Healthcare Limited and Gammon India Limited, at less than half the value of the loans. It was on a 100% upfront cash basis to ARCIL, CFM ARC, JC Flowers and Omkara ARC. JC Flowers Asset Reconstruction Company emerged the frontrunner to acquire distressed loans of Jaypee Healthcare, while Omkara ARC is in fray to acquire Gammon India loans from Union Bank of India.

The government bank received binding bids for four stressed accounts with outstanding loans of INR 5,200 million and resulting in 34% to 90% recovery. The bank will hold a Swiss auction process on February 21 and accept a minimum bid at 5% mark up to the base bid, according to a bank document. ACCIL Corporation has received the highest offer among the four loans, where the bank has received a binding bid from Asset Reconstruction Company India Ltd. for INR 1,030 million against total debt of INR 1,150 million, resulting in a recovery of over 90%.

For Jaypee Healthcare, JC Flowers ARC offered 82% recovery on the debt of INR 680 million. Similarly, CFM ARC has offered 80% to buy INR 860 million of SDB Developers loans. The lowest bid is offered for Gammon India, where Omkara ARC has offered to pay 34% for INR 2,520 million debt.

All binding bids are at a reserve price set by the lender. These are mostly loans that have not turned bad over the last several years.