The consolidated committee of creditors (CoC) for two insolvent Srei group companies on Friday decided to further extend the deadline for submission of the resolution plans by prospective applicants till August 29, as creditors have asked bidders for higher financial bids. Bidders have also been suggested to submit complete resolution plans.
Earlier, the CoC had decided to extend the deadline for submission of resolution plans till August 19, after receiving three bids for the two NBFCs under the corporate insolvency resolution process.
Three bids have so far been received for the Srei group companies from New York-based investment firm Arena Investors, VFSI Holdings, an affiliate of Värde Investment Partners, and Shon Randhawa (lead partner) and Rajesh Viren Shah. While Varde Partners has reportedly put forward over Rs 14,000-crore bid, the second bid is of more than Rs 10,000 crore.
“The CoC in its meeting today decided to ask the bidders for an upward revision of their bids, while extending the deadline for submission of the resolution plans,” sources close to the development told FE.
“The deadline has been extended also to give an opportunity to everyone to submit complete bids,” sources said. A mail sent to Rajneesh Sharma, the administrator for the two firms, went unanswered till the time of going to press.
Notably, as of January 31, 2022, the administrator admitted total claims of Rs 22,964.64 crore of commercial banks on Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), against the combined amount of Rs 25,115.29 crore claimed by them.
Lenders had earlier extended the deadline for the two NBFCs by 10 days to August 10, after prospective bidders requested for an extension. The deadline earlier was July 30.
The final list of the PRAs for SIFL and SEFL consisted 13 entities, including Vedanta, Jindal Power, ARCIL, JM Financial Asset Reconstruction Company and Edelweiss Alternative Asset Advisors. The deadline for submitting the proposed resolution plan of the highest bidder (H1) to the Kolkata bench of the National Company Law as decided by the tribunal is September 4.
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 NCLT.