ARCs seek clarity on why RBI nixed Aircel sale plan

NEW DELHI/MUMBAI : The Association of ARCs in India, a body representing asset reconstruction companies, has written to the Reserve Bank of India (RBI) seeking clarity on why the regulator has rejected the resolution plan for bankrupt telecom operator Aircel Group, said a person aware of the development.

The central bank has rejected the resolution plan submitted by UV Asset Reconstruction Co Ltd for acquiring the assets of Aircel, saying the plan does not conform to the guidelines of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, said the person requesting anonymity.

RBI has also rejected another insolvency resolution plan submitted by UV ARC, the person said.