CFM Asset Reconstruction Private Limited (CFM Asset Reconstruction Co) has emerged as a surprise bidder for JBF Industries Limited (BSE:514034) with INR  8 billion out-of-court resolution plan to settle the INR 20 billion debt of the stressed company. JBF has been marked as a non-performing asset by lenders for several years now and a bid for it has come amid a surge in commodity prices, allowing bankers to settle a legacy bad loan which has been 100% provided by most of them. “CFM ARC is the only bidder with a binding offer so one can say they are the front runners. Bankers will meet next week to consider the resolution plan and decide the future course of action,” said a person involved in the process. Bank of Baroda is the lead lender to JBF with INR 3.5 billion exposure. Other lenders include State Bank of India, IDBI Bank, Union Bank of India Punjab National Bank, HDFC Bank and Axis Bank. Bank of Baroda did not reply to an email seeking comment. “It is likely that lenders will invite a competing bid through a Swiss challenge method to ensure they fulfil their vigilance obligations. Bankers are pushing for a full cash settlement rather than the15% cash and 85% securities offer which ARCs normally give,” said a second person aware of the negotiations. Promoters led by Bhagirath Arya have a 30% stake in JBF of which 93% is pledged with lenders. After this deal, CFM ARC will control the debt and can invoke the pledges. Bankers are, however, relieved with this offer.