Srei

Lenders may get nearly 45% of the admitted claim of Rs 32,750 crore from NARCL

They feel that existing resolution plans under consideration by the Srei CoC fail to offer a fair and equitable consideration to both creditors and shareholders of Srei companies, the sources said

In a last ditch effort, Srei Group promoters have submitted a resolution plan with the Srei administrator under Section 12A of IBC, offering to pay off dues of around Rs 32,000 crore to creditors to withdraw their companies from the ongoing insolvency process. Section 12A allows erstwhile management of corporate debtors to settle matters between creditors and withdraw cases under Corporate Insolvency Resolution Process ('CIRP'). According to sources, the offer from the Kanorias was the highest with a net present value of Rs 7,000 crore, including upfront cash of Rs 3,500 crore. While the rest of the entire debt will be repaid through a combination of financial instruments such as cash, Non-convertible debentures (NCDs), Optionally convertible debentures (OCDs), and equity over a period of five years, sources claimed. There is no official communication from the Kanorias. If any resolution plan comes, it will be reviewed to see whether it qualifies under Section 12A of the IBC and t

The Reserve Bank on Tuesday appointed V Ramachandra, former chief general manager of Canara Bank, as a member of the Advisory Committee of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL). After superseding the boards of SIFL and SEFL in October 2021, the RBI had appointed a three-member advisory committee to assist the administrator of the two crisis-ridden firms. "Consequent upon the resignation of Shri Farokh N Subedar from the Advisory Committee with effect from January 31, 2023, it has been decided to appoint Shri V Ramachandra as a member of the Advisory Committee with immediate effect," the central bank said in a statement. The Advisory Committee shall advise the Administrator in the operations of SIFL and SEFL during the corporate insolvency resolution process, it added. The other two members of the committee are -- Venkat Nageshwar Chalasani, former deputy managing director, State Bank of India; and T T Srinivasaraghavan, former managing

The Enforcement Directorate (ED) Tuesday conducted simultaneous raids here on properties of of two organisations - Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd, which are undergoing bankruptcy proceedings, in connection with the ongoing probe into alleged illegal financial dealings by them, an ED official said. The central agency's officials raided an office of the promoters at Alipore area of the city, besides at Tangra, Hastings and an upmarket residence at Anandapur allegedly belonging to officers of the organisation, he said. "A total of nine places in the city are currently being searched ... Raids are underway at different places in the city as part of our investigation into the financial irregularities and illegal transactions by the two organisations," the ED official told PTI. The raids by about 50-60 ED officer are involved in the raids, which began at around 8.30 am with a large number of central forces on guard outside each of the nine premises, he ...

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Srei has received three compliant resolution plans, which will be voted on by lenders and debenture holders

The banks will now be able to rely on government guarantees on the stop security receipts (SRs) issued by the NARCL during the liquidation proceedings

The transaction auditor of debt-ridden Srei has indicated a fresh fraud amounting to Rs 296 crore under the erstwhile promoters. As per the report prepared by the transaction auditor, the concerned transactions occurred during financial years 2014-2015 to 2021- 2022, Srei Infrastructure Finance Ltd said in a regulatory filing. The fraud relates to certain disbursement made to a company called ARSS. The amount of Rs 295.69 crore is the gross outstanding, including principal and interest recoverable from the customer, as on September 30, 2021, on account of the suspect disbursement of loans, it added. Srei is undergoing insolvency resolution under the Insolvency and Bankruptcy Code (IBC). The administrator had appointed BDO India as a Transaction Auditor, which unearthed this fraud, it said, adding the application has been filed before the NCLT under Section 60(5) and Section 66 of the IBC on January 5, 2023. Earlier, the transaction advisor had flagged fraud transactions worth over

Financial lenders include State Bank of India, Punjab and Sind Bank, Axis Bank, HDFC Bank, Union Bank of India, IDBI Bank, UCO Bank, and Indian Overseas Bank

The Committee of Creditors (CoC) of Srei lenders will take cognizance of the valuation report of the twin Srei Group companies undergoing a resolution process on Friday, a source said on Thursday. If the fair and liquidation value of Srei Infrastructure Finance and Srei Equipment Finance will be greater than the resolution plans submitted by the three bidders, the CoC may not consider them. "There is a CoC meeting tomorrow (January 6). A presentation will be made before the CoC on the valuation. The lenders will take cognizance of the valuation report as part of the ongoing resolution process," the source said, declining to be identified. According to the sources, the valuation reports will not come in the way of the ongoing resolution process. The financial proposals were received on Wednesday after online bidding in a "challenge mechanism" process, adopted by the administrator Rajneesh Sharma, available under the Insolvency and Bankruptcy Code, to maximise the recovery. "The ...

The Varde Partners-Arena consortium has emerged as the highest bidder after it submitted a revised bid on Thursday with an additional cash component of Rs 3,600 crore for the two Srei group of companies under the insolvency and bankruptcy process, sources said. It has offered a marginally higher cash component in its earlier bid, which was higher than National Asset Reconstruction Company Ltd (NARCL) and Authum, which came in second and third position on that count, sources said. The last day of the bid for Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) ended on Thursday. On an aggregate basis as well, the Varde-Arena consortium has bid the highest amount totalling over Rs 14,000 crore, including bonds, OCDs and equity and upfront cash, the sources said. The Committee of Creditors (CoC) would take a call on the revised bid submitted by the consortium of Varde Partners and Arena in its meeting on Friday. The government-backed NARCL had on Wednesday submitted t

In the final lap, there were just two bidders in the fray - NARCL, and Authum with an NPV of Rs 5,526 crore

The Consolidated Committee of Creditors (CoC) of two debt-ridden Srei companies are likely to ask bidders to improve their resolution plans by December 15, a top official said on Sunday. The CoC, however, remains committed to the January 5 (2023) deadline offered by the adjudicating authority to complete the corporate insolvency resolution process, he said. The Kolkata-based Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL), which are undergoing a resolution process in the National Company Law Tribunal (NCLT), have received three bids. "Intense negotiations are taking place with each of the bidders, and after another meeting slated on December 12, bidders will be offered to submit their revised bids by December 15," a top official involved in the process told PTI. The CoC will "vote on the resolution plans after the revised bids are submitted and the RBI nod will be taken" before submitting to the NCLT, he said. "The deadline of January 5 to conclude the

The Consolidated Committee of Creditors (CoC) of twin Srei companies may take two-three days to select the resolution plan from among three bids for the Kolkata-based NBFC entities, a senior official said on Friday. Since Wednesday, the CoC is holding internal meetings besides deliberating with the three -- Varde Partners and Arena consortium, government-backed bad bank NARCL and Authum Investment and Infrastructure -- in Mumbai for Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL). The consortium of Varde Partners and Arena has submitted a bid value of Rs 14,000 crore, while National Asset Reconstruction Co Ltd (NARCL) submitted a resolution worth Rs 13,500 crore. The third bid of Authum Investment and Infrastructure is valued at Rs 7,000 crore, a government official who attended the meeting told PTI. The value of resolution plans could not be independently verified. The total value of resolution plans submitted by the applicants involves upfront cash payout, ..

The NARC has offered an upfront cash payment of Rs 2,100 crore and Rs 3,500 crore payable in deferred instruments

Srei Infrastructure Finance and Srei Equipment Finance were admitted for bankruptcy following applications filed by the Reserve Bank of India in October 2021

Singapore-based Payash Capital, a 49 per cent stakeholder in Trinity Alternative Investment Managers Limited (TAIML), has opposed the decision of the administrator to include ArcelorMittal as a bidder for SREI assets under insolvency proceedings. In a letter to the administrator, Rajneesh Sharma, of SREI Infrastructure Finance Limited, Payash Capital said, ArcelorMittal Group is not competent to apply for bid of SIFL since ArcelorMittal has zilch expertise in the field of finance business. TAIML is an investment manager managing AIF (Alternative Investment Fund) that is jointly promoted by SREI Infrastructure Finance Limited (SIFL) with 51 per cent stake, and balance 49 per cent held by Payash Capital Singapore PTE Limited. Payash Capital in the letter dated October 31, 2022 has objected to the inclusion of ArcelorMittal in bidding for SREI assets as it would hinder and disrupt the ongoing recovery proceedings by TAIML against ArcelorMittal. TAIML and ArcelorMittal have been engage

Sources indicated that issuing a fresh RFRP meant that the process was being opened to EoI participants

Sources close to the development said whether new participants who were not part of the original list of EOI would be allowed will have to be evaluated