Varde-Arena, NARCL submit final bid for Srei group of companies; details here

Final bids for the Srei group of companies have been submitted by a consortium of Arena Investors LP and Varde Partners, National Asset Reconstruction Co. Ltd (NARCL), and Authum Investment & Infrastructure under the insolvency and bankruptcy process. A lot of interest was generated among potential bidders because of the resolution process for Srei group companies. The bidders include Capri Global and ArcelorMittal who finally did not submit the bids. The NARCL bid comes after RBI enabled asset reconstruction firms with Rs 1,000 crore of net owned funds (NOF) to bid for assets under the insolvency process. Alvarez and Marsal is the advisor to the resolution plan. Reliance Home Finance and Reliance Commercial Finance are already getting acquired by the Mumbai-based Authum Investment & Infrastructure. Based in London, Varde Partners is a global alternative investment company. It has jointly bid with Arena Investors, which is an investment corporation based in New York. As part of the bid, earnest money deposit (EMD), resolution plan, and bank guarantee have been submitted by the investors. For discussing the received resolution plans, the committee of creditors (Co) will hold a meeting this week. An individual aware of this matter told Mint that CoC is going to read the whole resolution plan and take legal advice to check whether the bids have properly complied with the Insolvency and Bankruptcy (IBC) law. After this, the CoC is going to negotiate the amount of bidding. Srei Infrastructure Finance and Srei Equipment Finance were referred by the Reserve Bank of India (RBI) for bankruptcy in October 2021 after the central bank suspended the boards of companies and an administrator was appointed. Claims of Rs 32,750 have been made against the companies by 44 lenders. Srei’s administrator informed the stock exchanges last month that Srei’s auditor BDO had found frauds amounting to Rs 13,110 crore as of the end of September. Previously, the company reported fraudulent transactions of about Rs 5,100 crore via 2 separate disclosures on the stock exchange. The time has been extended till 5 January 2023 by the National Company Law Tribunal for completing the resolution process for Srei Infrastructure Finance. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.