Rumour: Apollo, Ceat & JK top runners to acquire Falcon Tyres

According to media reports, Apollo Tyres, JK Tyres and Ceat Tyres are currently the top bidders for acquiring Falcon Tyres.

Falcon Tyres stopped its operations after recording huge losses. The creditors are currently in the process of recovering their money from the defunct firm.

Most of the debt that Falcon Tyres owed to its lenders was bought by Edelweiss Asset Reconstruction Company (ARC). The ARC has now filed an application under the Bankruptcy and Insolvency Law at the National Company Law Tribunal (NCLT) for disposing off the remaining assets of Falcon Tyres in order to recover the pending arrears.

Reports suggest that around 12 companies have shown interest in buying the remaining assets. Sale of these assets is expected to fetch around Rs. 600-700 crore. However, the names of the bidders haven't been revealed as yet.

The entire bidding process is being organised under the consulting firm Deloitte, which is serving as the resolution professional in the case. The final deal needs to be concluded within a period of 180 days from the creditors initiating the corporate insolvency process by appealing to the NCLT.

Falcon Tyres was incorporated in 1973 with its headquarters in Mysore, Karnataka. It was founded under Dubai-based MR Chhabria Group. In December 2005, the Ruia group bought a controlling stake in the Falcon brand and had been operating it as a subsidiary. Falcon Tyres used to sell nylon bias ply tyres and butyl tubes under the Dunlop brand in India before shutting down due to accumulating losses.

Source: ET Auto