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NCLT Kolkata allows group insolvency proceedings for two SREI firms

NCLT Kolkata allows group insolvency proceedings for two SREI firms

NCLT Kolkata allows group insolvency proceedings for two SREI firms
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By Ritu Singh  Feb 15, 2022 2:09:35 PM IST (Published)

The National Company Law Tribunal (NCLT), the body that adjudicates issues relating to Indian companies, has allowed group insolvency proceedings for SREI Equipment Finance and SREI Infrastructure Finance.

The National Company Law Tribunal (NCLT), the body that adjudicates issues relating to Indian companies, has allowed group insolvency proceedings for SREI Equipment Finance and SREI Infrastructure Finance.

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According to the order from the Kolkata bench of the NCLT, lenders can now proceed with expressions of interest (EOIs).
A written order from the Kolkata bench of the NCLT is yet to be made public. The bench orally pronounced order on February 14.
Sources told CNBC-TV18 that lenders to SREI are likely to invite expressions of interest for the companies within a week.
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 The RBI had superseded the boards of two companies of the SREI group and appointed an administrator to run their affairs.
The total debt of SREI Group was over Rs 36,000 crore in October and banks like SBI, Bank of India (BoI), and UCO Bank have already classified the account of the NBFC as a non-performing asset (NPA).
 
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