Force India Sale : Banks lose 40 mn pounds

Force India Sale : Banks lose 40 mn pounds
Highlights

One of the two main bidders, keen to acquire embattled Indian businessman Vijay Mallyas Force India Formula One racing team after it went into administration, has claimed that a consortium of 13 Indian banks lost out on estimated 40 million pounds as a result of an unfair sales process concluded last month

London: One of the two main bidders, keen to acquire embattled Indian businessman Vijay Mallya's Force India Formula One racing team after it went into administration, has claimed that a consortium of 13 Indian banks lost out on estimated 40 million pounds as a result of an “unfair” sales process concluded last month.

Russian fertiliser group Uralkali said that by turning down its higher bid for the company, the administrators had denied the extra funds that would have accrued to the shareholder of Force India – Mallya's Orange India Holdings Sarl – which is subject to a freezing order issued by the UK's High Court in favour of his 13 creditor Indian banks, led by the SBI.

Uralkali launched legal proceedings against administrators FRP Advisory in the High Court in London on Friday to claim “tens of millions of dollars” in damages over the alleged “prejudicial and unequal treatment” in the bidding process.

The administrators, however, insist they oversaw a “fair and transparent bidding process” which led to the sale of Force India to the Racing Point consortium, led by Canadian billionaire Lawrence Stroll.

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