Union Bank of India (NSEI:UNIONBANK)?s Swiss Challenge auction on July 5 for five troubled accounts has attracted counter bids for only Jaypee Healthcare Limited. Delhi-based Shine Star Build-Cap Private Limited emerged as the highest bidder to acquire the public sector lender?s non-performing debt in the company with a bid of INR 720 million, while Suraksha Asset Reconstruction Private Limited came in second with a bid of INR 650 million. Previously, J.C. Flowers Asset Reconstruction Private Limited had submitted a binding bid of INR 618 million for the stressed asset during an e-auction held on June 27.

Union Bank of India has given JC Flowers time until July 11 to match the highest bid, failing which Shine Star will be declared the successful bidder for Jaypee Healthcare. If JC Flowers matches Shine Star?s bid, it will be declared a successful bidder. Last month, the Allahabad Bench of the National Company Law Tribunal admitted Jaypee Healthcare into the corporate insolvency resolution process on a petition filed by Yes Bank Limited (NSEI:YESBANK), whose debt has now been assigned to JC Flowers.

Other lenders to the company include Union Bank, Export-Import Bank of India, Punjab National Bank (NSEI:PNB), Bank of Baroda Limited (NSEI:BANKBARODA), and Asset Reconstruction Company (India) Limited. Union Bank of India?s debt in Jaypee Healthcare stood at INR 685.6 million as of March 2024, and it had set a reserve price of INR 617 million. The bank expects to recover more than 100% of its debt once it is assigned.

Jaypee Healthcare is a 100% subsidiary of Jaypee Infratech. Meanwhile, the remaining four accounts did not attract any counter bids during the Swiss Challenge auction conducted by Union Bank of India, leading to the original bidders being declared successful.