homebusiness Newscompanies NewsRace for Srei twins: Three suitors submit binding bids as deadline ends
Race for Srei twins: Three suitors submit binding bids as deadline ends
It is down to 3 bidders who have submitted binding bids to acquire Srei companies under the insolvency and bankruptcy law. As many as 7 potential suitors were in the running.
Only three bidders have submitted binding bids to acquire Srei Group companies — SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL) — under the insolvency and bankruptcy law as the deadline nears. As many as seven potential suitors were in the running for the troubled companies.
The first binding bid has come in from a consortium of Varde Partners and Arena Investors. London-based Varde Partners is a global alternative investment firm, which is participating in the Srei insolvency resolution via its affiliate company VFSI Holdings. Arena Investors LP is a New York-based investment firm.
The second offer has come in from the National Asset Reconstruction Company, or the NARCL, which was recently made eligible to bid for companies under the IBC by an amendment in the ARC rules by the RBI. The third offer came from Authum Investment.
While offers from NARCL and Authum are not known yet, the consortium of Varde and Arena has offered close to Rs 14,000 crore to acquire the Srei twins companies.
The total claims the Srei Group of companies face are over Rs 32,750 crore. Canara Bank, Union Bank, State Bank of India, Punjab National Bank, and Bank of Baroda are some key lenders involved in these discussions.
Lenders to SREI firms had invited expressions of interest (EOIs) for SREI Infra and SREI Equipment Finance in the last week of February. The EOIs were invited for the resolution of the two firms together as a going concern. Interests for selective assets would not be accepted by lenders, sources told CNBC-TV18.
The committee of creditors meeting is expected to take place in just a couple of days from now, which will evaluate all of these offers, verify whether they meet all of the eligibility norms, and then negotiate with the bidders.
SREI Equipment Finance and SREI Infrastructure Finance were admitted into the bankruptcy court on February 15 this year, after the Reserve Bank of India superseded the boards of both companies due to governance concerns and defaults.
Financial creditors have claimed over Rs 11,070 crore from SREI Infrastructure Finance Ltd, and Rs 34,223 crore from SREI Equipment Finance.
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