MUMBAI: The National Asset Reconstruction Co. Ltd (NARCL) has won the bid for two stressed Srei Group firms after receiving nearly 90% of the votes from the Committee of Creditors in the ongoing insolvency proceedings for Srei Infrastructure Finance Ltd and Srei Equipment Finance.
The lenders on Wednesday approved the plan submitted by NARCL, which offered a Net Present Value (NPV) bid of Rs 5,555 crore. “89.25% of the lenders’ votes were in favour of NACL plan while Authum’s plan got 84.86 % of votes. NARCL’s plan will be sent to the Reserve Bank of India (RBI) for a no-objection certificate and then filed with the National Company Law Tribunal,” a banker told this newspaper. Authum Investment and Infrastructure with a bid of Rs 5,526 crore received the second-highest vote with 84.86% while the consortium of Varde Partners and Arena Investors, which had submitted a financial bid of nearly Rs 4,680 crore, bagged the third position with around 9% vote.
After the completion of the challenge mechanism process, the Srei companies had received these three bids. The RBI superseded the boards of Srei Infrastructure Finance and Srei Equipment Finance in October 2021 due to governance concerns and repayment defaults. The regulator applied with the NCLT Kolkata to initiate the insolvency proceedings against the companies.
NARCL’s total value of the plan stood at Rs 14,301 crore which includes a cash component of Rs 3,001 crore, debentures and security receipts worth Rs 3,300 crore, and an uncommitted payment of Rs 8,000 crore. These uncommitted payments are conditional and subject to recovery from underlying assets over the next seven years.
NARCL plan to be sent to RBI for nod
The lenders on Wednesday approved the plan submitted by NARCL, which offered a Net Present Value (NPV) bid of Rs 5,555 crore. NARCL’s plan will be sent to the Reserve Bank of India (RBI) for a no-objection certificate and then filed with the National Company Law Tribunal,” a banker told this newspaper