After Capri Global Holdings and ArcelorMittal affiliate AM Mining India submitted expressions of interests (EoIs) for two Srei entities, creditors to the insolvent companies are expecting higher financial bid values and upfront cash offers from prospective resolution applicants amid a more competitive environment in the latest round of the corporate insolvency resolution process (CIRP).

The consolidated committee of creditors (CoC) for Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) has earlier decided to extend the last date for submission of resolution plans to November 15.

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In the first round of the CIRP, the final list of the prospective resolution applicants for SIFL and SEFL consisted of 13 entities. Now, the list has 15 names after Capri Global and AM Mining submitted their EoIs.

In the first round, the NBFCs had received two resolution plans as Varde Partners and Arena Investors had jointly submitted one. The consortium had put forward around Rs 14,000-crore bid with around Rs 6,500 crore of upfront cash. The second bid submitted by Shon Randhawa and her partner was of around Rs 10,000 crore.

The creditors, however, did not agree on the upfront cash offered by the two bidders, and with a view to maximise the value of the assets of the corporate debtors for all stakeholders, a request for resolution plans was issued by the administrator, Rajneesh Sharma.

“Competitive environment has been properly created now with the two latest additions in the final list of the prospective resolution applicants. Creditors are expecting much more than what had been offered by Varde Partners and Shon Randhaw. The creditors are expecting bids with higher upfront cash,” sources close to the matter told FE.

The EoI from Capri Global Holdings was received by the administrator on October 14 in response to the fresh publications with regards to submission of EoIs by prospective resolution applicants (regardless of whether they appear in the final list).

The EoI submitted by Capri Global Holdings, having met the eligibility criteria as per invitation for EoI dated February 25, 2022, was placed before the CoC in its meeting held on October 17. The CoC approved a resolution to include the name of Capri Global Holdings in the final list of prospective resolution applicants.

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An EoI from AM Mining India was received on September 27 after the expiry of the last date of submission of EoI. AM Mining India, while citing its reason for delay, also requested for condonation of delay in submission of EoI. “The EoI submitted by AM Mining, having met the eligibility criteria as per invitation for EoI dated 25th February 2022, was placed before the committee of creditors in its meeting held on October 1, 2022, and after considering all aspects including the value maximization for all stakeholders including but not limited to banks, financial institutions and retail debenture holders, the CoC approved a resolution to include the name of AM Mining India Private Limited in the final list of prospective resolution applicants,” according to a stock exchange filing by SEFL, a subsidiary of SIFL.

Insolvency proceedings against SIFL and its subsidiary SEFL commenced in October 2021 after insolvency petitions filed by the Reserve Bank of India were approved by the Kolkata bench of the National Company Law Tribunal.