Voting on top bidder for troubled Srei companies likely to face delays
Separately, the National Asset Reconstruction Company (NARCL), the highest bidder, is awaiting clarity on the payment terms from its owner, the government, on the acquisition of the twin Srei companies. This has also delayed the voting process.
Srei lenders to start voting on resolution plans from Monday
Most Srei lenders, including State Bank of India, will prefer to vote for the government-promoted bad bank since it has given the highest offer of ₹5,555 crore, the people said. Authum has offered ₹5,526 crore while Arena-Varde team offered ₹4,680 crore. All offers are on a net present value basis (NPV), arrived at by discounting future cash flows.
Srei companies, RCap may get more resolution offers
Srei Infrastructure Finance and Srei Equipment Finance (SEFL) generated a lot of interest among potential bidders after the administrator restarted the sale process a couple of months ago. ArcelorMittal-promoted A M Mining India and Capri Global - the two late entrants - have sought longer time for due diligence and to submit a ₹50-crore earnest money deposit (EMD).
Lenders' Dilemma: Restart Srei Sale Or Review Non-compliant Bids
A majority of lenders did not favour accepting a non-compliant EMD since that would require changing the terms of the RFP and reinviting bids. Some lenders, however, were worried that the alternative option - liquidation of the twin Srei companies - will result in lower recoveries.
Fin Min asks banks to sell at least 3 accounts to NARCL by Oct-end
Further, lead banks will seek consent from member banks to sell another 15 shortlisted accounts, including Jaypee Infratech, Srei Infrastructure Finance, Srei Equipment and a few Future Group companies, to the bad bank, the people said.
Jindal Poly, Arham in race for Sandesaras' Sterling SEZ
On July 16, 2018, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted the insolvency resolution petition filed by Srei Infrastructure Finance after the borrower defaulted on its dues. Subsequently, the company was admitted for liquidation on October 18, 2021, in the absence of any viable resolution plan.
"This is to inform you that the 13th (Thirteenth) meeting of the Consolidated Committee of Creditors of Srei Infrastructure Finance Limited and Srei Equipment Finance Limited was duly convened and conducted on Monday, August 29, 2022, from 5:15 P.M. onwards. The meeting was conducted virtually.
Administrator Rajnish Sharma received two plans on Wednesday - one from Arena Investors in partnership with a Varde Partners affiliate and another joint offer from Shon Randhawa and Rajesh Viren Shah - but he pushed back the deadline to submit the final bids to August 19.
Srei administrator extends deadline for bids after receiving two offers
The last day to make an offer for Srei Infrastructure Finance and Srei Equipment Finance has now been extended to August 19, giving other applicants a chance to submit a plan, the people said. The earlier deadline was Wednesday evening.
NARCL interested in taking over loan accounts of debt-ridden Srei: Official
The development comes at the time when the resolution is at an advanced stage, and financial bids are expected to be submitted latest by August 10 for taking over debt-ridden Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).
Srei lenders to consider selling assets to ARCs to hasten recovery
A joint lenders' meeting will take place on Monday to consider this, Uco Bank managing director Soma Sankara Prasad said. Uco Bank is one of the major lenders to the Srei companies with Rs 1100 crore outstanding loans.
Arena Investors and Varde Partners are preparing to submit a plan for Srei
At a meeting of the committee of creditors held on Wednesday, most lenders voted to extend the deadline for receiving resolution plans to August 10 from the end of this month. Avoidance transaction audit provides details of those transactions which are prejudicial to the interest of the creditors.
Future, Srei Cos among 17 accounts in NARCL's buy list
The largest account on the list is Srei Equipment Finance with an outstanding loan of Rs 22,485 crore. The list also includes Srei Infrastructure Finance (Rs 10,330 crore outstanding), Future Retail (Rs 10,700 crore), Future Entertainment (Rs 5,800 crore), Future Lifestyles Fashions (Rs 1,781 crore), Future Supply Chain Solutions (Rs310 crore), and Future Consumers (Rs 281 crore).
Srei lenders to retain cash on books till companies get sold
This is a variation from the past resolutions wherein the bidders were beneficiary of the earnings accrued during the corporate insolvency resolution process (CIRP), which in turn helped them reduce the acquisition cost, said a senior official from a consulting firm.
The committee of creditors took both decisions on June 24, the people said. Earlier, Rajneesh Sharma, the administrator of Srei Infrastructure Finance and Srei Equipment Finance, had set June 30 as the deadline for accepting resolution plans.
NCLT admits insolvency plea against Nirmal Lifestyle Kalyan
Kolkata-based Srei Equipment Finance Ltd had approached the Mumbai bench of the National Company Law Tribunal (NCLT) after Nirmal Lifestyle Kalyan, an affiliate of Mumbai-based Nirmal Lifestyle Ltd, defaulted on its dues worth around Rs 84 crore.
Srei group transaction auditor reports about Rs 3,025 cr-fraud
The Srei group companies, which are undergoing corporate insolvency resolution process, came under duress during the Coronavirus-induced lockdown, as non-payment from its customers led to asset-liability mismatches.