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MUMBAI : The lenders of debt-ridden Srei companies have asked the three final bidders to submit revised bids under the resolution plan by 22 December. After long negotiations with the bidders— National Asset Reconstruction Co. Ltd (NARCL), Authum Investments and a consortium of Arena Investors LP and Varde Partners—the committee of creditors (CoC) have requested them to improve upon the initial plans, said two officials aware of the matter.
The bidders had submitted their resolution plans, earnest money deposits (EMDs) and bank guarantees as part of their bids on 3 December.
One of the two officials cited above said the consortium of Varde Partners and Arena had submitted a bid value of ₹14,000 crore, while NARCL sent a resolution plan worth ₹13,500 crore. Authum’s bid is valued at ₹7,000 crore.
The total value of the resolution plans submitted involves upfront cash payout, deferred payments through instruments like NCDs. Authum’s cash payout component was the highest at ₹2,800 crore and it proposed to complete the payout of total committed value within 3.5 years. The other two bidders offered to complete the payment over 5-7 years, said the official.
“The CoC is expecting an increase in bid by up to ₹1000-1500 crore. They have asked bidders to revise bids and also look into the compliance issues with respect to Request for Resolution Plan (RFRP),” the second official said.
“The committee will open the valuation report from the valuers after receiving the revised resolution plan. Thereafter, the resolution plan will be put to vote before the committee,” the official added.
In October 2021, the Reserve Bank of India referred Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) for bankruptcy after their boards were superseded by the central bank, and an administrator was appointed. Forty-four lenders have made claims of ₹32,750 crore against the companies.The three bidders were among 17 final potential resolution applicants for SIFL and SEFL. Investors like Capri Global and AM Mining, a unit of ArcelorMittal, were on the final list of potential resolution applicants. They later opted out of the race.
Financial lenders of the two Srei companies include State Bank of India, Punjab and Sind Bank, Axis Bank, HDFC Bank, Union Bank of India, IDBI Bank, UCO Bank, and Indian Overseas Bank.
PTI contributed to the story.
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