The committee of creditors (CoC) of the Srei group has started negotiations with the two resolution applicants after financial bids were received earlier this month, and will be asking for more upfront cash payment from the bidders, as well as improvement in the total bid value.
Against a total admitted claim of Rs 32,749.71 crore of 44 lenders, the two bidders have submitted bids of around Rs 14,000 crore each for the Srei group companies — Srei Infrastructure Finance Limited and Srei Equipment Finance Limited. Arena Investors and Varde Partners have made a joint bid. The other bid came from Shon Randhawa and Rajesh Viren Shah combine.
The bidders have made an offer of Rs 3,000 crore as upfront cash. The remaining amount will be paid over the next seven years. According to sources, lenders are planning to ask for Rs 5,000 crore as upfront cash.
“The committee of creditors met today and crystallised the points for negotiation with the resolution applicants,” said a source.
One of the key points of negotiation is that the lenders want the bidders to improve the offer to Rs 16,000 crore.
“Lenders also want the remaining payment to be made in five years as compared to 7 years offered by the bidders,” the source added.