Srei firms’ creditors to urge bidders to raise bid values, upfront cash offered | The Financial Express

Srei firms’ creditors to urge bidders to raise bid values, upfront cash offered

The two insolvent NBFCs, which are under the corporate insolvency resolution process, have received two resolution plans; the consortium of Varde Partners and Arena Investors has put forward a bid of around Rs 14,000 crore, while the second bid submitted by Randhawa and her partner is of around Rs 10,000 crore.

Srei firms’ creditors to urge bidders to raise bid values, upfront cash offered
The 14th meeting of the consolidated committee of creditors (CoC) of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) was conducted on September 5.

The consolidated committee of creditors of two insolvent Srei group companies has decided to negotiate with the two resolution applicants — a consortium of Varde Partners and Arena Investors, and entrepreneur Shon Randhawa and her partner Rajesh Viren Shah — to increase the financial bid values and upfront cash offered.

The two insolvent NBFCs, which are under the corporate insolvency resolution process, have received two resolution plans; the consortium of Varde Partners and Arena Investors has put forward a bid of around Rs 14,000 crore, while the second bid submitted by Randhawa and her partner is of around Rs 10,000 crore.

Also read: 2022 Citroen C5 Aircross Facelift launch tomorrow: All details

The 14th meeting of the consolidated committee of creditors (CoC) of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) was conducted on September 5. The resolution applicants presented the detailed resolution plans during the meeting. “In Monday’s CoC meeting conducted by the administrator, points of negotiations with the two resolution applicants have been crystallised. The CoC and the resolution applicants have agreed on the points of negotiations. Negotiations will commence now,” sources told FE.

The CoC will hold talks with the resolution applicants regarding increasing the bid values, among other points. “They will be urged to increase the amounts of upfront cash as well. Also, the applicants will be requested to consider reducing the time periods (tenure) offered by them to make the total payments,” the sources said. The CoC meeting is likely to take place later this week.

The creditors will also discuss the matter of the earnest money deposit (EMD), as Randhawa and Shah did not furnish it in the prescribed format. Moreover, they have requested some modifications in the prescribed norms for the EMD, required to be furnished along with the financial bids. “In order to take a decision on the EMD matter a committee has been constituted,” the sources said.

Also read: India can do a lot to help Bangladesh cope with issue of Rohingya refugees: Bangladeshi PM Sheikh Hasina

A mail sent to Rajneesh Sharma, the administrator for the two firms, was unanswered till the time of going to print.

As of January 31, the administrator admitted total claims of Rs 22,964.64 crore of commercial banks of

SIFL and SEFL, against the combined amount of Rs 25,115.29 crore claimed by them.

The final list of the prospective resolution applicants for SIFL and SEFL consisted of 13 entities, including Vedanta, Jindal Power, ARCIL, JM Financial Asset Reconstruction Company and Edelweiss Alternative Asset Advisors.

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.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos
14 Photos
G20 Presidency: Rare Photos from all-party meet, chaired by PM Modi
11 Photos
‘The festival of democracy’ – Modi votes in Gujarat 2nd phase! See PHOTOS
11 Photos
Gujarat Assembly Election 2022: The Festival of Democracy – In PICS