NARCL interested in taking over loan accounts from debt-ridden Srei: official
The National Asset Reconstruction Co Ltd (NARCL) has expressed interest in the loan accounts of Srei Group companies which are undergoing a corporate insolvency resolution process, a senior official from a public bank.
The development comes as resolution is at an advanced stage, and financial offers are expected to be submitted no later than August 10 to take over Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).
“We have received preliminary interest from NARCL to take over the Srei account. We will discuss this at the joint lenders meeting on August 8,” said Soma Shankara Prasad, Managing Director and CEO of UCO Bank.
Srei’s total liabilities stood at about Rs 32,000 crore from all sources, including banks, debentures and external commercial borrowings, officials said.
The company has proceeded with cash salvage and upgrading of NPA accounts worth nearly Rs 5,000 crore since an RBI appointed administrator started looking into the affairs of the companies in crisis, they said.
“There will be no impact on the ongoing resolution process led by IBC, even if existing lenders/banks cede or sell loans to any other institution, including Asset Reconstruction Companies (ARCs), a Srei’s board administrator, Rajneesh Sharma, who is also the resolution professional, said PTI.
Srei officials said the total amount of the resolution is likely to be around Rs 10,000 crore.
There were originally 14 suitors who submitted expressions of interest to acquire Srei Group companies under the Insolvency and Bankruptcy Code (IBC) in March.
But now only foreign bidders based in New York, Arena Investors LP Ltd, VFSI Holdings, a subsidiary of Varde Investment, and Shon Randhawa and his partners are expected to participate in the financial tender.
In early October last year, the Reserve Bank of India replaced the boards of SIFL and its wholly-owned subsidiary SEFL.
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