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    Voting on top bidder for troubled Srei companies likely to face delays

    Synopsis

    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 lendersAgencies
    If NARCL receives the highest votes, it would be the first acquisition of an insolvent company by the government-owned asset reconstruction company (ARC) under the Insolvency and Bankruptcy Code (IBC).

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    Mumbai: The voting on identifying the highest bidder for the twin Srei companies could face delays due to an objection raised by state-owned National Bank for Agriculture and Rural Development (Nabard) over distribution of proceeds, people aware of the development told ET.

    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's administrator, Rajnish Sharma, had invited lenders to vote on the three plans - NARCL, Authum Investment and Infrastructure, and Arena Investors-Varde Partners team. Originally, the voting was scheduled to start from January 16.

    Most lenders favour NARCL, the government-promoted bad bank that gave the highest offer of ₹5,555 crore on a net present value (NVP) basis. The administrator of Srei Infrastructure Finance and Srei Equipment Finance did not respond to ET's request for comment.

    Nabard has verified claims of ₹884 crore. It has petitioned with the tribunal that it has exclusive charge over some assets to Srei Equipment.

    Nabard has filed a petition with the bankruptcy court stating that it does not want to alienate its security, said a senior official involved in the sale process. It has claimed that it is entitled to a higher share of proceeds since it has superior security. Authum has offered ₹5,526 crore, while Arena-Varde team offered ₹4,682 crore at the auction on January 3.

    However, a day later Arena-Varde team improved their offer to ₹4,832 crore. All offers are on a net present value basis (NPV) basis which is arrived at by discounting future cash flows. If NARCL receives the highest votes, it would be the first acquisition of an insolvent company by the government-owned asset reconstruction company (ARC) under the Insolvency and Bankruptcy Code (IBC).




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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