Creditors seek more in Liberty Oil debt auction
Liberty Oil Mills, a cooking oil company, has been engaged in refining and trading edible oils, along with manufacturing clarified butter, vegetable oils, fats, and bakery products. With an annual capacity exceeding 650,000 metric tons and six processing facilities with a strong presence in Western India, according to an India Ratings report.
Mumbai: , a creditor to the bankrupt Mills, is gearing up for a Swiss auction tied to a binding bid that guarantees 66% recovery of the . Phoenix ARC has made a bid of ₹82 crore for the ₹126 crore , leading the lender to schedule a Swiss auction on March 22 to explore further bids.The auction, set with a reserve price of ₹82 crore and a minimum markup requirement of 5%, has asked for counter bids starting at ₹86 crore.
Spokespersons of both Phoenix ARC and Bank of India did not respond immediately to requests for comment.
Liberty Oil Mills, a cooking oil company, has been engaged in refining and trading edible oils, along with manufacturing clarified butter, vegetable oils, fats, and bakery products. With an annual capacity exceeding 650,000 metric tons and six processing facilities with a strong presence in Western India, according to an India Ratings report.
The company started facing cash flow mismatches after the buyer's credit withdrawal as per Reserve Bank of India's guidelines introduced in 2018, and high custom duty payments, according to a court document.
Source: Stocks-Markets-Economic Times
