Excelsior Correspondent
JAMMU, Aug 12: The Calcutta Bench of the National Company Law Tribunal (NCLT) comprising Rohit Kapoor (Member Judicial) and Balraj Joshi (Member Technical) has approved the resolution plan of Government-backed National Asset Reconstruction Company (NARCL) for two insolvent SREI companies — SREI Infrastructure Finance (SIFL) and SREI Equipment Finance (SEFL).
“Subject to the observations made in this order, the resolution plan dated January 18, 2023 along with addendum dated January 24, 2023, is hereby approved by this adjudicating authority,” an order dated August 11, 2023 of NCLT said.
The resolution plan thus approved shall be binding on the corporate debtor and other stakeholders involved in terms of Section 31 of the Insolvency & Bankruptcy Code, 2016 so that revival of the debtor company shall come into force with immediate effect, the order said.
According to the NCLT order, NARCL and IDRCL (India Debt Resolution Company Limited) will infuse funds into the corporate debtors and other funds towards assignment payments and provide for corporate debtors to undertake repayment obligations aggregating to Rs 14,867.50 crore. This includes an upfront cash of Rs 3,180 crore.
The total admitted claim including that of financial creditors, operational and other creditors is Rs 33,026.31 crore, marking a recovery of around 45 per cent. SBI, Punjab National Bank, Axis Bank, HDFC Bank, Union Bank of India, Canara Bank, IDBI Bank, Uco Bank and Indian Overseas Bank, among others, are the financial creditors of the two firms.
The Corporate Insolvency Resolution process was initiated against the two NBFCs through orders dated October 8, 2021. Three bidders — NARCL, the consortium of Varde Partners and Arena Investors and Authum Investment — had participated in the challenge mechanism process, adopted by the consolidated CoC, to acquire the two NBFCs under the corporate insolvency resolution process.
The resolution plan of NARCL was approved with 89.2 per cent voting share of the consolidated CoC. The administrator of two insolvent SREI companies, Rajneesh Sharma, received the RBI’s no objection on March 23 for the change in management.
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