The Kolkata bench of National Company Law Tribunal (NCLT) will continue further hearing from the Srei group of companies’ counsel appearing on behalf of the administrator today. The counsels for the consolidated Committee of Creditors (CoC) and the successful resolution applicant that is National Asset Reconstruction Company (NARCL) will also present their arguments on Monday.
The counsel appearing for the for Srei group of companies administrator, had last week argued that there was no relaxation or modification done and all plans submitted went by the same evaluation matrix. He, further, argued that all compliant resolution plans were shared with the CoC by the administrator before being put on vote and if there was something “wrong” in the plan then it should have been flagged off then and not now when the process of voting is complete.
He was presenting his arguments against the allegations of the counsel appearing on behalf of debenture shareholders, who are also a part of the CoC, who had earlier said that there was “no certainty of recovery” out of the underlying assets of the corporate debtor and hence the repayment to creditors could be impacted.
The counsel for debenture shareholders argued that as per the final resolution plan submitted by NARCL, the security receipts to be issued to the creditors would be by way of redemption of secured non-convertible debentures and there is no guarantee whatsoever that it could be redeemed at the expected price.
Following the completion of the challenge mechanism process, the Srei group entities had received three bids. The consolidated CoC for two insolvent Srei companies approved NARCL’s offer of ₹5,555 crore in NPV terms, including upfront cash of ₹3,180 crore, with the highest voting (89.25 per cent) amongst the bidders. The resolution plan submitted by Authum Investment and Infrastructure (₹5,526 crore in NPV terms) received 84.86 per cent vote and that of the consortium of Varde Partners and Arena Investors (₹4,680 crore in NPV terms) got 9 per cent vote.