Edelweiss ARC partners with Oaktree and other investors to buy GTL’s loans

Edelweiss asset reconstruction company (ARC) has partnered with US-based alternative investment manager Oaktree Capital and other US investors to buy about 90 per cent of GTL Infrastructure’s loans, from a consortium of lenders, in a transaction completed before end-September 2018. The loans are worth Rs 40 billion. Under the deal, these investors will be paying Rs 2.4 billion in cash, of which Edelweiss will be paying about 15 per cent and the remaining amount will be put in by the others. Prior to this deal, Canara Bank had approached the National Company Law Tribunal (NCLT) to recover Rs 10 billion from GTL under the Insolvency and Bankruptcy Code. However, following this deal, Edelweiss will also become a party to the NCLT proceedings.