ICICI Bank has inked a Memorandum of Understanding (MoU) with Apollo India Credit Opportunity Management LLC and AION Capital Management to set up an Asset Reconstruction Company (ARC). This step has been taken in order to resolve cases related to bad loans, besides revitalizing and turning around over-leveraged borrowers.
The MoU is subject to regulatory approvals, acquisition of debt exposures from lenders and equity stakes in companies. The ARC will acquire debt from lenders as well as equity stakes in companies. The collaboration seeks to streamline the operations of borrowers, facilitate deleveraging and arrange additional funding on a case-by-case basis.
ICICI Bank is India’s largest private sector bank with consolidated total assets of $132.17 billion at March 31, 2015. The Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms.
