Authum Investment and Infrastructure may well be the last to join the fray to acquire Srei group entities under the insolvency and bankruptcy proceedings, as further extension in timeline may not be allowed, sources said.
The deadline for submission of resolution plans by prospective applicants that was earlier set for November 25 , has been extended by a week till December 2, by Committee of Creditors (CoC). However, despite the extension in timeline, the final date for completion of corporate insolvency resolution process (CIRP) remains unchanged for January 5, 2023, sources in the know of the matter said.
“This (extension of timeline for submitting bids) is an internal arrangement between CoC and PRAs (prospective resolution applicants). But the date for completion of CIRP will be strictly adhered to,” the sources said.
The latest applicants who joined the race to acquire the Srei group entities include AM Mining–an affiliate of ArcelorMittal, Capri Global and National Asset Reconstruction Company (NARCL). In the first CIRP round, the final list of prospective resolution applicants for SIFL and SEFL had comprised 13 entities, and they had received two resolution plans as Varde Partners and Arena Investors had jointly submitted one. The consortium had put forward a bid of around ₹14,000 crore, while the second bid submitted by Shon Randhawa and her partner was for around ₹10,000 crore.
With the addition of new resolution applicants, the list now comprises 17 entries. This is likely to lead to better competition and result in better value and better negotiation of terms.
On creditors request
It is to be noted that National Company Law Tribunal had further extended the time of completion of Corporate Insolvency Resolution Process (CIRP) for two Srei entities till January 5, 2023 after the creditors requested for an extension, as the new prospective resolution applicants, including National Asset Reconstruction Company (NARCL), sought additional time to complete their due diligence.
Insolvency proceedings against Srei Infrastructure and Srei Equipment Finance commenced in October 2021 after RBI filed insolvency applications against the two companies. The RBI–appointed administrator has admitted claims of around ₹31,868 crore of the total claims received (around ₹34, 223 crore) from financial creditors to Srei Equipment Finance Ltd (SEFL). He had also admitted claims to the tune of ₹257 crore from financial creditors to Srei Infrastructure Finance.