The debt assignment marks a crucial step in addressing one of India’s longest-running corporate debt resolutions. JAL, classified as a non-performing asset since 2016, was admitted to insolvency proceedings last year. The Rs 12,000-crore transaction involves a State Bank of India-led consortium of 25 lenders, including major public and private sector banks and financial institutions.
Under the terms of the deal, NARCL’s offer involves a 23% recovery for lenders, split into a 15% upfront cash payment and 85% in government-guaranteed security receipts—a structure unique to NARCL. As a result, banks will receive approximately Rs 1,800 crore in cash, with the remaining value dependent on future recoveries through the Insolvency and…
