Srei Group

NARCL acquires two SREI companies under the insolvency resolution

Paves way for resolution of debt worth Rs 32,700 cr

NARCL may wind up Srei group's equipment finance arm, retain SIFL

After completion of the takeover of two Srei group firms through NCLT route, state-owned asset reconstruction company NARCL is expected to retain only one of the acquired companies, official sources said. The Kolkata bench of the National Company Law Tribunal (NCLT) has approved the resolution plan of NARCL for takeover of the twin Srei firms under Insolvency and Bankruptcy Code. The resolution plan had already received approval from banking sector regulator Reserve Bank of India. NARCL emerged as the winning bidder for the two Srei group firms -- Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) -- through a bidding process in February. "According to the resolution plan submitted, the National Asset Reconstruction Company Ltd (NARCL) will cease all fresh lending activities in the group's equipment financing arm -- SEFL, and after recovering the outstanding debt, it will be 'wound up'," the official told PTI. The loan repayment process may extend for the

NCLT approves NARCL's resolution plan for two Srei group companies

The National Company Law Tribunal's Kolkata bench has approved National Asset Reconstruction Company Ltd's resolution plan for two Srei group companies, according to a regulatory filing. NARCL emerged as the winning bidder for the two Srei group firms -- Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) -- through an insolvency resolution process in February. The NCLT has orally pronounced an order on August 11 approving the resolution plan submitted by NARCL with respect to the corporate insolvency resolution process of the companies, SIFL said in the regulatory filing on Friday. "A detailed disclosure shall be made upon the written order being made available -- which shall inter alia contain the details on the treatment of existing securities of the corporate debtors under the approved resolution plan, as required under the Listing Regulations and the Guidance," it said. The Reserve Bank of India (RBI) superseded the boards of SIFL and SEFL in October 2

Srei promoters dispute insolvency proceedings; next hearing on March 31

Government had suspended fresh insolvency proceedings through an ordinance in June 2020

NARCL may revive Srei's group's infra financing arm SIFL, wind up SEFL

Public sector asset reconstruction company NARCL is likely to revive Srei Infrastructure Finance Ltd (SIFL) and wind up the group's equipment financing arm SEFL after recovering outstanding debt in seven years, a source said on Sunday. NARCL (National Asset Reconstruction Company) on Wednesday won the bid to take over the two Srei group firms -- SIFL and Srei Equipment Finance Ltd (SEFL) -- through an insolvency process. The source said that as per the NARCL's resolution plan, SEFL will be kept dormant for at least seven years without any fresh lending and the non-banking financial company (NBFC) will be wound up after recovering outstanding debt. "Upon taking over the companies, NARCL will not carry fresh lending from SEFL and the company will be wound up after recovering its outstanding in the market and settling court cases," an official told PTI. "SIFL which has a clean balance sheet and far fewer legal imbroglios will be revived. The regulators are also of this view as per ...

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RBI appoints V Ramachandra as member of Advisory Committee of SIFL, SEFL

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

Srei auditor flags fresh fraud of Rs 296 cr under former promoters

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

CoC won't accept revised Varde-Arena offer for two Srei companies

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

Varde-Arena consortium revises bid; emerges as highest bidder for Srei

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

Arena-Varde Partners, NARCL and Authum submit final bids for Srei companies

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

Lenders for Srei group companies accept EoI by AM Mining India

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

ArcelorMittal Nippon Steel India joins race to buy Srei group firms

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

Srei group receives two resolution plans for debt-ridden companies: Report

Two bids have been received for two debt-ridden Srei group companies under the insolvency resolution process and one of the bids is estimated to be worth around Rs 15,000 crore, according to sources. Srei Infrastructure Finance Limited and Srei Equipment Finance Limited are undergoing a resolution process under the Insolvency and Bankruptcy Code. "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. "It is further informed that the Administrator of the Corporate debtor has received two (2) 'Resolution Plans' pursuant to the Request for Resolution Plan dated April 1, 2022, (as modified on June 30, 2022) issued by the Administrator within the deadline for submission as given to the Prospective Resolution Applicants (PRAs)," a regulatory filing sai

Three bidders submit resolution plans for bankrupt Srei Group firms

According to sources, Arena Investors LP and VFSI Holdings, an affiliate of Varde Partners, were among those who submitted plans

NARCL interested in taking over loan accounts of debt-ridden Srei: Official

The National Asset Reconstruction Co Ltd (NARCL) has evinced interest in the loan accounts of Srei group companies, which are undergoing corporate insolvency resolution process, a top official of a state-owned bank said. 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). "We have received preliminary interest from NARCL on taking over the Srei account. We will discuss this at the joint lenders' meeting on August 8," UCO Bank MD & CEO Soma Shankara Prasad said. The total liabilities of Srei stood at around Rs 32,000 crore from all sources, including banks, debentures and external commercial borrowing, officials said. The company has made cash recovery and upgradation of NPA accounts worth nearly Rs 5,000 crore since an RBI-appointed administrator started looking into the affairs of ..

Deadline for Srei resolution extended for third time, new date is Aug 10

RBI superseded group firms in October 2021 over governance concerns and payment defaults

Srei group transaction auditor reports Rs 3,025 cr fraud in FY20 and FY21

Srei Equipment Finance said its administrator has received a report from the transaction auditor about certain fraud transactions in FY20 and FY21, bearing a monetary impact of over Rs 3,025 crore

Delhi HC stops Punjab & Sind Bank from acting on SREI loan reclassification

Sources say the order will help SREI preserve the resolution process while protecting lenders and stakeholders from any value erosion on account of such unnecessary reclassification

Srei Group expects delay in Q2 results on insolvency order

The comapny on Wednesday said there may be a delay in submitting the financial results