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MUMBAI : Consortium of Arena Investors LP and Varde Partners, National Asset Reconstruction Co. Ltd (NARCL) and Mumbai-based Authum Investments have submitted final bids for the Srei group of companies in insolvency and bankruptcy proceedings.
The investors have submitted a resolution plan, a principal deposit (EMD) and a bank guarantee as part of the offer. The Committee of Creditors (Co) will meet next week to discuss the resolution plans received.
“The CoC will read the entire resolution plan and take legal advice to see if the offers fully comply with the IBC Act. After that, the CoC will negotiate the bid amount,” said a person familiar with the matter.
In October 2021, the Reserve Bank of India referred Srei Infrastructure Finance and Srei Equipment Finance to bankruptcy after the central bank replaced the companies’ boards and appointed an administrator. Forty-four lenders filed claims ₹32,750 kroner against the companies.
NARCL’s offer, the first under the IBC process, comes after the RBI allowed asset reconstruction companies with ₹1,000 million in net owned assets (NOF) to bid for assets in insolvency proceedings. She appointed Alvarez and Marsala to advise him on a plan to deal with the problem. EI advises the Srei Administrator on the troubleshooting process.
Mumbai-based Authum Investment & Infrastructure is already acquiring Reliance Home Finance and Reliance Commercial Finance. It also bid for part of Reliance Capital’s assets last week.
Varde Partners, a global alternative investment firm based in London, bid together with Arena Investors, a New York-based investment firm. The size of the offer of the three bidders is not yet known.
Emails to Varde Partners, Authum Investments and NARCL did not elicit any response.
The resolution process for the Srei Group companies generated a lot of interest among potential bidders, including Arcelor Mittal and Capri Global, which ultimately did not submit bids.
Last month, Srej’s administrator told the stock exchange that Srej’s auditor BDO had discovered fraud worth ₹13,110 million by the end of September. Before that, the company reported fraudulent transactions of approx ₹5,100 million dollars through two separate stock market disclosures.
The National Company Law Tribunal has extended the deadline to January 5 next year to complete the insolvency resolution process for Srei Infrastructure Finance.
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