According to local media reports, Indian FM Radio network Radio Mirchi, a part of Entertainment Network India Limited (ENIL), Radio Orange and Sapphire FM have each bid Rs 2.51 billion (US $30 million) to acquire Big FM Radio network, which is undergoing an insolvency process.

Big FM, owned by Reliance Broadcast Network Ltd (RBNL), is the country’s largest radio network with 58 stations and reach of over 1,200 towns and 50,000 villages.

In February this year, India’s bankruptcy court admitted RBNL under the Corporate Insolvency Resolution Process (CIRP) on the plea of IDBI Trusteeship Services Ltd., which had approached the tribunal after the company allegedly failed to repay its dues of over Rs 1.74 billion.

Of the total admitted claims of the lenders of Rs 5.78 billion, IndusInd Bank’s claim is Rs 1.72 billon, HSBC Asset Management Rs 2.38 billion, Franklin Templeton MF Rs 1.03 billion and Reliance Commercial Finance’s claim is Rs 640 million.

After considering the cash at Big FM, the total recovery for lenders could be as high as 55 to 60 per cent against the total admitted claims.

Sources close to the process said that the lenders are likely to ask both the bidders to revise their bids upward.