New York investment firm, 2 others submit bids for Srei Group companies
At least three offers have been received for Srei Group companies currently under the insolvency resolution process.
New York-based investment firm Arena Investors, VFSI Holdings, a subsidiary of Värde Investment Partners, along with lead partner Shon Randhawa and Rajesh Viren Shah, have reportedly submitted resolution plans for the two insolvent companies.
The lenders had previously extended the deadline for submitting resolution plans for the two NBFCs by 10 days to August 10, after potential bidders asked them for an extension.
The previous deadline was July 30. It was extended for the third time.
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“At least three offers have arrived. The bidders are Arena Investors, Värde Investment Partners and Shon Randhawa and his partner,” sources familiar with the developments told FE.
“The Committee of Creditors (CoC) is meeting today. The CoC is now reviewing offers. Creditors will not accept non-compliant offers,” one of the sources said.
Letters sent to Rajneesh Sharma, the administrator of the two insolvent companies, remained unanswered until press time.
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Notably, the final list of potential resolution candidates for Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) included no less than 13 entities, including Vedanta, Jindal Power, ARCIL, JM Financial Asset Reconstruction Company and Edelweiss Alternative Asset Advisors. .
September 4 is the deadline to submit the proposed resolution plan of the highest bidder (H1) to the Kolkata bench of the National Company Law (NCLT) as decided by the court.
The insolvency proceedings against SIFL and its subsidiary SEFL, the two NBFCs, commenced in October 2021 after the insolvency petitions, filed by the Reserve Bank of India, were approved by the Kolkata bench of the NCLT.
Rajneesh Sharma, former chief managing director of the Bank of Baroda, took charge of the two Srei companies after the central bank heavily criticized the two companies over governance issues and replaced the boards. Srei Equipment Finance, a wholly owned subsidiary of Srei Infrastructure Finance, said in April last year that it had received expressions of interest from international private equity investors, including the US-based Arena Investors. States, for an injection of capital into the company.