homebusiness Newscompanies NewsSREI insolvency case: Expressions of interest invited for infra and equipment finance arms
SREI insolvency case: Expressions of interest invited for infra and equipment finance arms
The deadline for submission of EOIs has been set for March 12. The last date of submission of final resolution plans by shortlisted applicants has been set for April 26.
Lenders to SREI firms have called for expressions of interest (EOIs) for Srei Infra and Srei Equipment Finance. The EOIs invited are for resolution of Srei Infra and Srei Equipment Finance together as a going concern. Interests for selective assets would not be accepted by lenders, sources have told CNBC-TV18.
The deadline for submission of EOIs has been set for March 12. The last date of submission of final resolution plans by shortlisted applicants has been set for April 26.
On February 15, the National Company Law Tribunal (NCLT), the body that adjudicates issues relating to Indian companies, allowed group insolvency proceedings for SREI Equipment Finance and SREI Infrastructure Finance.
The lenders have set eligibility of minimum tangible net worth of Rs 1,000 crore for non-financial applicants and minimum assets under management (AUM) of Rs 4,000 crore in the immediately preceding completed financial year for financial applicants.
According to the eligibility criteria, consortium PRAs should not have more than five members, with the lead member holding minimum 26 percent stake.
Financial creditors have claimed over Rs 11,070 crore from Srei Infra and Rs 34,223 crore from Srei Equipment Finance. The total debt of SREI Group was over Rs 36,000 crore in October
Key lenders to Srei Infra include Union Bank of India, Punjab National Bank, Canara Bank, Indian Bank, and Bank of Baroda, among others. Key lenders to Srei Equipment Finance include Canara Bank, Union Bank of India, Punjab National Bank, State Bank of India, and Bank of Baroda, among others.
The Reserve Bank of India (RBI) had moved the NCLT in October to initiate insolvency proceedings against SREI Group companies. The RBI had superseded the boards of two companies of the SREI group and appointed an administrator to run their affairs.
In a letter, the regulator had said that a statutory inspection of the books of both SIFL and SEFL conducted by RBI under Section of 45-N of the RBI Act, 1934, in regard to their financial position as of March 31, 2020, “revealed serious deterioration in (their) financial position.”
First Published: Feb 25, 2022 3:23 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Telangana CM violated poll code, defer Rythu Bharosa payment, says Election Commission
May 7, 2024 9:01 PM
Lok Sabha Election 2024: How Indian political parties are leveraging AI
May 7, 2024 6:59 PM