Srei firms receive 2 resolution plans, creditors to discuss plans on September 2 | The Financial Express

Srei firms receive 2 resolution plans, creditors to discuss plans on September 2

The two resolution plans will be presented before the CoC on September 2.

Srei firms receive 2 resolution plans, creditors to discuss plans on September 2
Notably, as of January 31, 2022, the administrator admitted total claims of Rs 22,964.64 crore of commercial banks of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), against the combined amount of Rs 25,115.29 crore claimed by them.

Two insolvent Srei group companies, which are under the corporate insolvency resolution process, finally received two resolution plans as Arena Investors and VFSI Holdings jointly submitted one.

Another resolution applicant, Shon Randhawa (lead partner) and Rajesh Viren Shah, submitted a resolution plan, but they did not furnish the earnest money deposit (EMD) in the prescribed format, according to people aware of the development.

The deadline for receiving resolution plans ended on Tuesday after the consolidated committee of creditors (CoC) for the two NBFCs had decided to extend the deadline till August 29, as creditors had asked bidders for higher financial bids. Bidders were also suggested to submit complete resolution plans.

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“There was a crucial CoC meeting on Tuesday. Two resolution plans have come. Arena and Varde Partners (VFSI Holdings) have jointly submitted a resolution plan. But the plans have not been opened,” said people close to the development.

Another source told FE that Shon Randhawa and Rajesh Viren Shah have requested some modifications in the prescribed norms for the EMD, required to be furnished along with the financial bids. “The CoC is likely to discuss it and take a final decision based on the financial bid submitted by Shon Randhawa and their partner. If their financial bid appears very good, then the creditors may accept their requests,” a person said.

The two resolution plans will be presented before the CoC on September 2. “The resolution applicants will be urged to appear personally before the CoC and present the resolution plans. The CoC will test the viability of the resolution plans. From September 3 onwards, negotiations with the resolution applicants will commence,” people cited above said.

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Notably, as of January 31, 2022, the administrator admitted total claims of Rs 22,964.64 crore of commercial banks of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), against the combined amount of Rs 25,115.29 crore claimed by them.

Notably, the final list of the prospective resolution applicants (PRAs) 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 the insolvency petitions, filed by the Reserve Bank of India, had been approved by the Kolkata bench of the National Company Law Tribunal (NCLT).

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