SREI Insolvency Case | Bid submission deadline extended to June 30
Lenders to the SREI Group companies voted to extend the deadline to submit the binding bids to June 30, sources said The initial deadline was set for May 17, which was later extended to June 7.
Lenders to SREI Group companies — SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL) — on Tuesday voted to extend the deadline for submission of binding bids for the companies to June 30, according to two people directly in the know of the matter.
“Bidders wanted more time, so we have decided to give them three more weeks. June 30 will be the new deadline,” said one of the executives involved in the matter. The initial deadline for submission of firm bids was set for May 17, which was later extended to June 7. However, given the complex nature of the deal involving the SREI group companies, bidders have sought more time before making their final offers, the source said.
Fourteen suitors had submitted Expressions of Interest (EOI) to acquire SREI Group companies under the insolvency and bankruptcy code in March.
Assets reconstruction companies, including JM Financial ARC, Asset Reconstruction Company of India Limited (ARCIL) and Prudent ARC, are among the suitors that submitted EOIs.
New York-based Arena Investors LP Ltd, Varde Investment's affiliate VFSI Holdings, Jindal Power, and Welspun Group’s company Diameter Trading, too submitted EOIs for the twins. New York-based private equity firm Charlestown Capital Advisors and Star Asia Group also jointly submitted an EOI, among others.
Lenders to SREI firms had invited EOIs for SREI Infra and SREI Equipment Finance in the last week of February. The EOIs invited were for the resolution of SREI Infrastructure and SREI Equipment Finance together as a going concern. Interests for selective assets would not be accepted by lenders, sources told CNBC-TV18.
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Finance were admitted into the bankruptcy court on February 15 this year, after the Reserve Bank of India superseded the boards of both the companies due to governance concerns and defaults.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.
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.
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First Published: Jun 7, 2022 3:02 PM IST
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