SREI insolvency case: Expressions of interest invited for infra and equipment finance arms

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.