The Reserve Bank of India-appointed administrator has admitted total claims of Rs 22,910.49 crore of commercial banks’ on Srei Infrastructure Finance and its wholly-owned subsidiary Srei Equipment Finance, against the combined amount of Rs 25,115.29 crore claimed by them.
Administrator Rajneesh Sharma has rejected claims of around Rs 1,604.63 crore by the commercial banks, while Rs 601.37 crore is under verification as of November 19.
The Kolkata bench of the National Company Law Tribunal (NCLT) on October 8 gave its approval to start insolvency proceedings against Srei Infrastructure Finance and Srei Equipment Finance after the Reserve Bank of India (RBI) filed insolvency applications against them.
The central bank filed the insolvency petitions just after the Bombay High Court dismissed a writ petition filed by two promoters of Srei group challenging the RBI’s decision to supersede the boards of these companies and initiate insolvency proceedings against them.
The second meeting of the committee of creditors of Srei Equipment Finance was convened and conducted on Monday.
At the meeting, the administrator apprised the committee of creditors of the current status of the Corporate Insolvency Resolution Process (CIRP), the composition of the committee based on the claims received, and the way forward on the resolution strategy — including group resolution and timelines — according to a stock exchange filing by Srei Infrastructure Finance.
On a request made by public sector lender Uco Bank, the RBI had filed applications for initiation of the CIRP under the Insolvency and Bankruptcy Code against the two companies through Sanjay Ginodia, senior partner of R Ginodia & Co.
Citing governance concerns and defaults by the two NBFCs in their various payment obligations, the RBI superseded their boards and appointed Sharma, former chief general manager, Bank of Baroda, as the administrator.
The central bank has also constituted a three-member advisory committee to assist the administrator. The committee members are R Subramaniakumar, former MD & CEO, Indian Overseas Bank; T Srinivasaraghavan, former MD, Sundaram Finance; and Farokh N Subedar, former COO and company secretary, Tata Sons.