Big corporates including Vedanta and Jindal Power, and asset reconstruction companies such as Assets Care and Reconstruction Enterprise, JM Financial Asset Reconstruction Company and Asset Reconstruction Company (India) (ARCIL) are some of the names that feature in the provisional list of eligible prospective resolution applicants for the Srei Group companies.

The administrator for the two Srei group companies — Srei Infrastructure Finance and Srei Equipment Finance — had on February 25 this year published an invitation to Expressions of Interest (EOI) and received around 14 EOls.

Some of the other entities in the list of eligible prospective resolution applicants include VFSI Holdings, Diameter Trading, International Asset Reconstruction Company, Arena Investors, Prudent ARC, Edelweiss Alternative Asset Advisors, Riddhi Siddhi Gluco Biols (lead partner) and Sherisha Technologies, Star Asia Group (lead partner) and Charlestown Capital Advisors, and Shon Randhawa (lead partner) and Rajesh Viren Shah, according to information available on the company’s website.

“This above provisional list of eligible Prospective Resolution Applicants (PRAs) is subject to responses to be received from certain PRAs based on clarifications sought by the administrator. The administrator reserves the right to make changes to the above provisional list based on further documents and/or clarifications received from the PRAs,” it said.

Insolvency proceedings

The Kolkata bench of NCLT had on October 8 given its approval to start insolvency proceedings against the two companies after the Reserve Bank of India filed insolvency applications against the two companies.

Citing governance concerns and defaults by the two NBFCs in meeting their various payment obligations, the RBI had on October 4 superseded their boards and appointed Rajneesh Sharma, former chief general manager, Bank of Baroda, as the administrator of the companies. The Kolkata bench of National Company Law Tribunal (NCLT) had in February this year allowed group insolvency proceedings for Srei Equipment Finance and Srei Infrastructure Finance.

The Reserve Bank of India-appointed administrator has admitted claims of around ₹31,868 crore of the total claims of around ₹34,223 crore from financial creditors to Srei Equipment Finance Ltd (SEFL). It has rejected claims to the tune of ₹1,606 crore while close to ₹751 crore is still pending for verification as on November 15.

Of the total claims of around ₹149 crore from operational creditors, the administrator has admitted claims amounting to ₹73 crore while the remaining ₹76.20 crore is under verification as on November 15.

The administrator has also admitted claims to the tune of ₹257 crore from financial creditors to Srei Infrastructure Finance.

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