March 22, 2023

The National Asset Reconstruction Co Ltd (NARCL) has evinced interest in the accounts of companies, which are undergoing corporate insolvency resolution process, a top official of a state-owned bank said.

The development comes at the time when the resolution is at an advanced stage, and financial bids are expected to be submitted latest by August 10 for taking over debt-ridden Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).

“We have received preliminary interest from NARCL on taking over the Srei account. We will discuss this at the joint lenders’ meeting on August 8,” UCO Bank MD & CEO Soma Shankara Prasad said.

The total liabilities of Srei stood at around Rs 32,000 crore from all sources, including banks, debentures and external commercial borrowing, officials said.

The company has made cash recovery and upgradation of NPA accounts worth nearly Rs 5,000 crore since an RBI-appointed administrator started looking into the affairs of the crisis-ridden firms, they said.

“There will be no impact on the ongoing IBC-led resolution process even if existing lenders/banks assign or sell out loans to any other institution, including asset reconstruction (ARCs), Srei board administrator Rajneesh Sharma, who is also the resolution professional, told PTI.

Srei officials said the total resolution amount is likely to be around Rs 10,000 crore.

There were originally 14 suitors who had submitted expressions of interest to acquire under the Insolvency and Bankruptcy Code (IBC) in March.

But, now only overseas bidders New York-based Arena Investors LP Ltd, Varde Investment’s affiliate VFSI Holdings and Shon Randhawa and his partners are expected to participate in the financial bidding.

The Reserve Bank of India had in early October last year superseded the boards of SIFL and its wholly-owned subsidiary SEFL.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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