Tyre makers bidding for India’s Falcon Tyres
Several leading Indian tyre makers are said to be bidding to acquire Falcon Tyres Ltd., the company that supplies the Dunlop tyre brand in Indian market. The Economic Times reports that Apollo Tyres, JK Tyre and Ceat Tyres are amongst the leading bidders.
The former Ruia Group company had debts of Rs 16 billion (£196.8 million), with the State Bank of India its main creditor. Most of the company’s debt was purchased by Edelweiss Asset Reconstruction Company (ARC), a specialist in the field of acquiring Non-Performing Assets (NPAs) from banks and financial institutions. According to The Economic Times, last week Edelweiss ARC filed an application with India’s National Company Law Tribunal (NCLT) under the country’s Insolvency and Bankruptcy Code.
The Insolvency and Bankruptcy Code requires the insolvency process for companies to be completed in 180 days, and Siby Antony, chief executive of Edelweiss ARC, told The Economic Times that he was “confident of concluding this deal” within the set timeframe. He added that it was too early to comment on bidders as the “process has just started.” The publication writes that “close to half a dozen firms have shown interest in the assets.”