The plan submitted by the consortium of Varde Partners and Arena Investors, adhering to the challenge mechanism process, as advised by the administrator, is likely to be opened on Monday. According to sources, a lenders’ meet is scheduled on Monday when the resolution plan submitted by the consortium for the Srei group entities will be opened.
It is to be noted that the administrator for Srei group entities had recently dismissed the allegations raised by the consortium over the challenge mechanism process and had shot out a letter stating that the revised plan submitted after the challenge mechanism was “non-compliant”.
Accordingly, the administrator had asked the consortium to submit a resolution plan as per the challenge mechanism process. The consortium was allowed time till the midnight of Saturday to submit a financial bid compliant with the rules of request for resolution plan (RFRP), under the corporate insolvency resolution process.
“The resolution plan submitted by Varde-Arena on Saturday as per the challenge mechanism will be scrutinised by the committee of creditors (CoC) from legal angles,” a source said.
The consortium is believed to have submitted the resolution plan with the financial bid it had submitted at the end of the second out of the five-round challenge mechanism process, which ended last Tuesday.
It is to be noted that the consortium had been in the fray from the beginning of the CIRP but had dropped out at the end of the second round of the challenge mechanism process. The consortium’s financial bid in terms of net present value (NPV) stood at around ₹4680 crore, including ₹3,250 crore upfront cash amount.
NARCL’s offer of ₹5,555 crore in NPV terms, which includes upfront cash of ₹3,180 crore, was found to be the highest at the end of challenge mechanism, followed by Authum Investment and Infrastructure’s bid of ₹5,526 crore