Thu 09/01/2022 04:02 AM
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UPDATE 35: 4:02 a.m. ET 9/1/2022: Srei Infrastructure Finance Ltd. announced to the BSE Ltd. Aug. 30 that the administrator of the corporate debtor had received two resolution plans within the deadline for submission as given to the Prospective Resolution Applicants (PRAs).

The consolidated committee of creditors (CoC) held its thirteenth consolidated meeting on Aug. 29, the announcement states.

Varde Partners in consortium with Arena Investors LP, and high net-worth individuals, submitted resolution plans for Srei Infrastructure Finance and Srei Equipment Finance on Aug. 29, as reported. Sherisha Technologies Pvt Ltd. also made a submission, but the plan was not submitted with proper documentation and was unlikely to be accepted by the consolidated CoC, as reported.




UPDATE 34: Varde Partners With Arena Investors, Sherisha Technologies, HNIs Submit Resolution Plans for Srei Infrastructure Finance, Srei Equipment Finance; CoC to Meet Sept. 2 to Discuss Plans

UPDATE 34: 2:32 a.m. ET 8/30/2022: Varde Partners in consortium with Arena Investors LP, Sherisha Technologies Pvt Ltd., and high net-worth individuals, submitted resolution plans for Srei Infrastructure Finance and Srei Equipment Finance on Aug. 29, said two sources with direct knowledge of the matter.

The committee of creditors (CoC) of Srei will meet Sept. 2 to open and discuss the resolution plans, the sources added.

Sherisha Technologies' resolution plan was not submitted with proper documentation, and so it is unlikely to be accepted by the CoC, the sources said.

Varde Partners declined to comment. Srei administrator Rajneesh Sharma, Arena Investors and Sherisha Technologies did not respond to requests for comment.

– Poonam Bansal, Dipika Lalwani

 




UPDATE 33: 69.63% of Srei CoC Votes to Extend Resolution Plan Deadline to Aug. 29

UPDATE 33: 3:37 a.m. ET 8/25/2022: 69.63% of the committee of creditors, or CoC, of Srei Infrastructure Finance and Srei Equipment Finance voted in favor of extending the deadline for submission of resolution plans by prospective resolution applicants, or PRAs, to Aug. 29 from Aug. 19, according to two sources with direct knowledge.

The CoC at its 12th consolidated meeting held on Aug. 19 decided that this will be the last extension provided to the PRAs, the sources said. PRAs will have to submit all documents including an earnest money deposit for their resolution plan to be eligible, the sources added.

Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma on Aug. 18 sent a clarification to PRAs regarding treatment of proceeds from “avoidance applications” filed with the National Company Law Tribunal (NCLT) Kolkata bench, the sources said.

The clarification states that resolution applicants should ascribe a value to avoidance transactions as part of the resolution amount, which should be to the satisfaction of the CoC if the resolution applicant considers the transfer of legal and/ or beneficial interest in and/ or rights to pursue and/ or recover and/ or realize the proceeds from these transactions, the sources explained.

The administrator further clarified that resolution applicants should specify any further rights over such transactions if CoC agrees to transfer and/or assign the transactions to the resolution applicant so that the proceeds recovered by the CoC will “solely” be for the benefit of the resolution applicant, the sources said. Any other amount recovered by the CoC will be reimbursed by the CoC, the sources added.

One of the prospective resolution applicants, Varde Partners, through VFSI Holdings Pte Ltd., had requested an additional six days from the CoC of Srei Infrastructure Finance and Srei Equipment Finance to submit the resolution plan, in order to conduct due diligence on fraudulent transactions disclosed through investigations by BDO India, as reported.

Srei Infrastructure Finance’s administrator did not respond to requests for comment.

--Dipika Lalwani




UPDATE 32: Srei Infrastructure Finance, Srei Equipment Finance CoC Extends Submission Deadline for Resolution Plans to Aug. 29 From Aug. 19

UPDATE 32: 9:47 a.m. ET 8/19/2022: Srei Infrastructure announced to the BSE Ltd. today, Aug. 19, that at a meeting held on the same day, the committee of creditors, or CoC, of the company and its wholly-owned subsidiary Srei Equipment Finance further extended the deadline for submission of resolution plans by prospective resolution applicants to Aug. 29 from Aug. 19.

One of the prospective resolution applicants, Varde Partners, through VFSI Holdings Pte Ltd., had requested an additional six days from the CoC of Srei Infrastructure Finance and Srei Equipment Finance to submit the resolution plan, two of the sources said. Varde requested more time to conduct due diligence on the transaction audit report prepared by BDO India LLP, the sources added.

The administrator of Srei Infrastructure Finance, Srei Equipment Finance on June 10 filed an application before the Kolkata bench of the National Company Law Tribunal, or NCLT, against Viom Infra Ventures Ltd., fka Quippo Infrastructure Ltd., and former promoters Hemant Kanoria and Sunil Kanoria, in relation to fraudulent loan disbursements totaling INR 4.338 billion ($54.4 million) disclosed through investigations conducted by BDO India, as reported. The administrator has further filed two separate applications before the NCLT, Kolkata bench after the transaction audit report by BDO India alleged further fraudulent transactions of INR 14.873 billion and INR 2.28 billion, as further reported.




UPDATE 31: Srei Infrastructure Finance, Srei Equipment Finance to Hold 12th CoC Meeting on Aug. 19 to Open Resolution Plans to be Submitted by Prospective Resolution Applicants

UPDATE 31: 6:39 a.m. ET 8/18/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma has scheduled the twelfth consolidated meeting of the companies’ committee of creditors (CoC) on Aug. 19, according to two sources familiar with the matter.

The agenda of the meeting is to open the resolution plans that are to be submitted by the three prospective resolution applicants, or PRAs, the sources said.

As reported, on Aug. 10, Rajneesh Sharma had received two resolution plans one from Varde Partners through VFSI Holdings Pte Ltd. and another from high net worth individuals, but the documents submitted to the CoC were incomplete. A third PRA, Arena Investors LP, sought more time to submit a resolution plan. As a consequence, the CoC extended the deadline to submit the resolution plans for all parties to Aug. 19.

Srei Infrastructure's administrator Rajneesh Sharma did not respond to a request for comment.

– Dipika Lalwani, Poonam Bansal

 




UPDATE 30: Srei Infrastructure Finance Confirms CoC Extends Resolution Plan Submission Deadline to Aug. 19

UPDATE 30: 7:53 p.m. ET 8/11/2022: Srei Infrastructure Finance Ltd. in an announcement to the BSE Ltd. on Aug. 11 confirmed that the committee of creditors (CoC) at the eleventh consolidated meeting of Srei Infrastructure Finance and Srei Equipment Finance Ltd. which was convened and conducted on Wednesday, Aug.10, extended the deadline for submission of the resolution plans by prospective resolution applicants (PRAs) to Aug. 19.

The consolidated CoC at the meeting discussed various aspects regarding consideration of the bids received from PRAs, according to the announcement.

 




UPDATE 29: Varde, HNIs Submit Resolution Plans for Srei Infrastructure Finance, Srei Equipment Finance; CoC Further Extends Resolution Plan Submission Deadline to Aug. 19 From Aug. 10 Due to Incomplete Documentation, Arena Investors Seeks More Time

UPDATE 29: 5:59 a.m. ET 8/11/2022:  Srei Infrastructure Finance, Srei Equipment Finance administrator Rajneesh Sharma has received two resolution plans, one from Varde Partners through VFSI Holdings Pte Ltd. and another from the high net worth individuals, according to two sources with direct knowledge of the matter. The third prospective resolution applicant, Arena Investors LP, sought more time to submit a resolution plan, the sources added.

However, documents submitted by Varde Partners and the high net worth individuals were “incomplete” and hence, the CoC decided to extend the deadline for all the parties to Aug. 19 from Aug. 10, the sources explained.

The high net-worth individuals include Shon Randhawa and Rajesh Viren Shah, as reported.

Varde declined to comment. Srei Infrastructure Finance, Srei Equipment Finance administrator Rajneesh Sharma, and Arena Investors LP did not respond to the requests for comment.




UPDATE 28: Arena Investors LP, Varde Partners, HNWI Expected to Submit Resolution Plan to Srei Infrastructure Finance, Srei Equipment Finance Administrator as Deadline Ends Aug. 10

UPDATE 28: 7:42 a.m. ET 8/10/2022: Prospective resolution applicants Arena Investors LP, Varde Partners through VFSI Holdings Pte Ltd. and high net worth individuals are expected to submit final resolution plans to the administrator of Srei Infrastructure Finance and Srei Equipment Finance shortly, as the deadline for submitting the plans ends today, Aug. 10, according to two sources with direct knowledge of the matter.

A consolidated meeting of the committee of creditors of Srei Infrastructure Finance and Srei Equipment Finance, (CoC) will be held today, wherein the administrator will reveal the proposed resolution plans in front of the CoC, the sources added

As reported, the CoC, at the ninth consolidated CoC meeting held on July 27, had extended the timeline to submit resolution plans to Aug. 10 from July 30 at the request of prospective resolution applicants.

Srei Infrastructure's administrator Rajneesh Sharma declined to comment.

– Poonam Bansal

 




UPDATE 27: Srei Infrastructure Finance, Srei Equipment Finance Hold 10th CoC Meeting on Aug. 8

UPDATE 27: 7:50 p.m. ET 8/8/2022: Srei Infrastructure Finance Ltd. announced to the BSE Ltd. on Aug. 8 that the tenth consolidated committee of creditors (CoC) meeting of the company and its wholly-owned subsidiary Srei Equipment Finance Ltd. was held on the same day.

The consolidated CoC discussed the submission dates for resolution plans and updates on the corporate insolvency resolution process, according to the announcement.

 




UPDATE 26: Srei Infrastructure Finance, Srei Equipment Finance CoC Further Extend Resolution Plan Submission Deadline to Aug. 10 From July 30

UPDATE 26: 5:05 a.m. ET 7/28/2022: The committee of creditors (CoC) of Srei Infrastructure Finance and Srei Equipment Finance, at the ninth consolidated CoC meeting held on July 27, extended the timeline to submit resolution plans to Aug. 10 from July 30 at the request of prospective resolution applicants, according to two sources with direct knowledge of the matter.

As reported, the CoC had already extended the timeline to submit the resolution plan to July 30 from June 30 at the seventh consolidated meeting held on June 24, at the request of three prospective resolution applicants - Arena Investors LP, Varde Partners through VFSI Holdings Pte Ltd., and high net worth individuals.

This would be the “final extension” given to the prospective resolution applicants, the sources said.

Srei Infrastructure's administrator Rajneesh Sharma did not respond to requests for comment.

– Poonam Bansal, Dipika Lalwani




UPDATE 25: Srei Infrastructure Finance, Srei Equipment Finance CoC Amends Cash Distribution Clause Under CIRP; Cash Accrued to be Passed on to Financial Creditors; Excess Cash to be Added to Upfront Cash Recovery

UPDATE 25: 4:51 a.m. ET 7/5/2022: The committee of creditors (CoC) of Srei Infrastructure Finance Ltd. and Srei Equipment Finance Ltd. at the eighth consolidated meeting held on June 30, passed a resolution to amend the cash distribution clause under the corporate insolvency resolution process (CIRP), according to two sources with direct knowledge of the matter.

Under amendments, cash accrued after April 1, 2022 till the transfer date by Srei Infrastructure Finance and Srei Equipment Finance would be passed on to the financial creditors (lenders) and be for their “benefit”, according to the sources. The accrued cash of the non-bank finance companies will not be considered for upfront cash recovery, the sources explained.

The cash in the books of Srei Infrastructure Finance and Srei Equipment Finance excludes any assets or receivables of third parties, the sources explained.

Further, the sources said, if on the transfer date, the cash component of the companies is more than the upfront cash recovery offered by the successful resolution applicant, then the “excess cash” after the amount paid to the lenders, shall be added to the upfront cash recovery. If the resolution applicant proposes a deferred payment structure then the “excess cash” would be adjusted from the deferred payment instruments offered by the resolution applicant at the discretion of the CoC, the sources added.

As reported, the CoC has extended the timeline to submit resolution plans to July 30 from June 30 on the request of three prospective resolution applicants - Arena Investors LP, Varde Partners through VFSI Holdings Pte Ltd., and high networth individuals - out of the 13 prospective resolution applicants, who are actively conducting the due diligence.

Srei Infrastructure's administrator Rajneesh Sharma did not respond to a request for comment.

- Poonam Bansal

 




UPDATE 24: Srei Infrastructure Finance, Srei Equipment Finance CoC Extend Resolution Plan Submission Deadline to July 30; Arena Investors, Varde Due Diligence On; Dun & Bradstreet Appointed TEV Consultant; 8th CoC Meeting to be Held on June 30

UPDATE 24: 6:38 a.m. ET 6/29/2022: The committee of creditors (CoC) of Srei Infrastructure Finance Ltd. and Srei Equipment Finance Ltd. at the seventh consolidated meeting on June 24, extended the timeline to submit resolution plans to July 30 from June 30, according to two sources with direct knowledge of the matter.

The extension was granted by the CoC on the request of three prospective resolution applicants - Arena Investors LP, Varde Partners through VFSI Holdings Pte Ltd., and high networth individuals - out of the 13 prospective resolution applicants, who are actively conducting the due diligence, the sources added.

The last day for filing a CoC-approved resolution plan at the National Company Law Tribunal (NCLT), Kolkata bench is Sept. 4, 2022, according to the sources.

The CoC has also appointed Dun and Bradstreet as the techno-economic viability (TEV) consultant, the sources said. As reported, administrator Rajneesh Sharma had received the proposal from Dun & Bradstreet, IDBI Capital Markets & Securities Ltd., and Kolkata-based LSI Financial Services to be appointed as the companies’ TEV consultant.

Separately, the administrator has scheduled the eighth consolidated CoC meeting on June 30, wherein the CoC members will discuss the transaction audit report, which will be shared with the prospective resolution applicants, according to the sources.

NABARD Petition

The National Bank for Agriculture and Development (NABARD) has filed an application with the NCLT Kolkata bench in its capacity as a financial creditor, seeking priority of repayments in full over all other payments by Srei Equipment Finance and pass recoveries out of the assigned assets to NABARD by Srei Equipment Finance, according to the sources.

In the light of NABARD’s application, the CoC members are of the view that NABARD should either choose to be a part of the CoC as a financial creditor or protect its right over the assets “charged” or “earmarked” to them under NABARD Act, in which case NABARD will have to cease being a financial creditor and the assets would be treated as third party assets under the IBC, the sources added.

Varde Partners declined to comment. Srei Infrastructure's administrator Rajneesh Sharma, Arena Investors LP, Dun and Bradstreet and NABARD did not respond to the request for comments.

– Dipika Lalwani, Poonam Bansal

 




UPDATE 23: Srei Infrastructure Finance, Srei Equipment Finance 7th Consolidated CoC Meeting Rescheduled to June 24

UPDATE 23: 7:07 a.m. ET 6/23/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma has rescheduled the seventh consolidated meeting of the companies’ committee of creditors (CoC) to June 24 from June 22, according to two sources familiar with the matter.

The agenda of the meeting, according to the sources, includes the following:

  • To update on the various corporate insolvency resolution process (CIRP) & going concern activities;

  • To update on CIRP litigations;

  • To update on the investors' process and the way forward in the resolution process; and

  • Any other matter as proposed by the CoC members.


Srei Infrastructure's administrator Rajneesh Sharma did not respond to a request for comment.

- Poonam Bansal




UPDATE 22: Srei Infrastructure Finance, Srei Equipment Finance 7th Consolidated CoC Meeting Due June 22

UPDATE 22: 2:24 a.m. ET 6/21/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma has scheduled a seventh consolidated meeting of the companies’ committee of creditors (CoC) at 2.30 p.m. IST on June 22, according to two sources familiar with the matter.

The agenda of the meeting, according to the sources, includes the following:

  • To update on the various corporate insolvency resolution process (CIRP) & going concern activities;

  • To update on CIRP litigations;

  • To update on the investors' process and the way forward in the resolution process; and

  • Any other matter as proposed by the CoC members.


Srei Infrastructure's administrator Rajneesh Sharma did not respond to a request for comment.

– Dipika Lalwani

 




UPDATE 21: Srei Infrastructure Finance, Srei Equipment Finance CoC Vote to Extend Resolution Plan Submission Deadline to June 30 From June 7 on PRAs Request; Voting Ends June 7

UPDATE 21: 6:04 a.m. ET 6/2/2022: The committee of creditors (CoC) of Srei Infrastructure Finance and Srei Equipment Finance began voting today, June 2, to extend the deadline to submit resolution plans to 6 p.m. on June 30 from June 7, at the request of various prospective resolution applicants (PRAs) due to a complex due diligence process, according to two sources familiar with the matter. The voting ends at 11 a.m. IST on June 7, the sources said.

The extension of the deadline to submit resolution plans was discussed at the sixth consolidated CoC meeting held on May 31, as reported.

Srei Infrastructure Finance and Srei Equipment Finance administrator, Rajneesh Sharma, told the CoC that the National Company Law Tribunal (NCLT), Kolkata bench, has extended the corporate insolvency resolution process timeline to Sept. 4, the sources said. The last day for filing a CoC approved resolution plan to NCLT is also Sept. 4, the sources added.

Rajneesh Sharma did not respond to a request for comment.

– Dipika Lalwani




UPDATE 20: Srei Infrastructure Finance, Srei Equipment Finance Holds 6th Consolidated CoC Meeting on May 31

UPDATE 20: 7:41 p.m. ET 5/31/2022: Srei Infrastructure Finance Ltd. in a filing to the BSE Ltd. on May 31, said that the sixth consolidated committee of creditors (CoC) meeting of Srei Infrastructure Finance and Srei Equipment Finance Ltd. had been convened on the same day to discuss the extension of a timeline for the submission of resolution plans.

 




UPDATE 19: Srei Infrastructure Finance, Srei Equipment Finance 6th Consolidated CoC Meeting Scheduled for May 31

UPDATE 19: 3:33 a.m. ET 5/31/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma has scheduled a sixth consolidated meeting of the companies’ committee of creditors (CoC) on May 31, according to two sources familiar with the matter.

The agenda of the meeting, according to the sources, includes the following:

  • Update on the various corporate insolvency resolution process (CIRP) & going concern activities

  • Update on the investor process, and the way forward in the resolution process


Rajneesh Sharma did not respond to a request for comment.

– Dipika Lalwani, Poonam Bansal

 




UPDATE 18: Srei Infrastructure Finance, Srei Equipment Finance CoC Vote to Extend Resolution Plan Submission Deadline to June 7 From May 17; Approval of CIRP Cost

UPDATE 18: 8:55 a.m. ET 5/17/2022: The committee of creditors of Srei Infrastructure Finance and Srei Equipment Finance is to conclude voting today, May 17, to extend the deadline to submit resolution plans to June 7, at the request of various prospective resolution applicants due to a complex due diligence process, according to two sources familiar with the matter.

The CoC is also voting to approve the CIRP cost incurred or to be incurred by the Srei Infrastructure Finance and Srei Equipment Finance administrator, Rajneesh Sharma, during the CIRP period for managing the operations of the company, the sources said.

The extension of the deadline to submit resolution plans was discussed at the fifth consolidated CoC meeting held on May 11, the sources said. The voting started on May 13, the sources added.

Srei Infrastructure Finance and Srei Equipment Finance administrator, Rajneesh Sharma, toldthe CoC that an application for extension of the CIRP timelines was allowed by the National Company Law Tribunal, Kolkata bench, during the hearing held on May 9, the sources said. The last date to complete the CIRP including the extension is Aug. 30, the sources added.

The approval of the resolution plan is proposed to be July 7, while the approval of the Reserve Bank of India is tentatively scheduled on Aug. 21, and the approved resolution plan is proposed to be submitted to the adjudicating authority on Aug. 22, the sources said.

Rajneesh Sharma did not respond to the request for comments.




UPDATE 17: Srei Infrastructure Finance, Srei Equipment Finance Lenders Discuss Investors Due Diligence Process, Extension of Timeline to Submit Resolution Plans at 5th Consolidated CoC Meeting May 11

UPDATE 17: 12:09 a.m. ET 5/12/2022: Srei Infrastructure Finance Ltd., in a filing to the BSE Ltd. on May 11, said that the consolidated Committee of Creditors (CoC) of Srei Infrastructure and Srei Equipment Finance Ltd. discussed an update on corporate insolvency resolution process (CIRP) activities including the investor due diligence process and an extension of timeline for submission of resolution plans at fifth CoC meeting held on the same day.

 




UPDATE 16: Srei Infrastructure Finance, Srei Equipment Finance 5th Consolidated CoC Meeting Postponed to May 11

UPDATE 16: 8:40 a.m. ET 5/6/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma has postponed the scheduled fifth consolidated meeting of the companies’ committee of creditors (CoC) to May 11 from May 7, said two sources familiar with the matter.

The reason for postponing the meeting was not immediately known, but the agenda and voting items remain unchanged, the sources said.

Rajneesh Sharma could not be reached for immediate comment.

 




UPDATE 15: Srei Infrastructure Finance, Srei Equipment Finance to Hold 5th Consolidated CoC Meeting on May 7

UPDATE 15: 2:15 a.m. ET 5/6/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma has scheduled a fifth consolidated meeting of the companies’ committee of creditors (CoC) for May 7, according to two sources familiar with the matter.

The agenda of the meeting, according to the sources, includes the following:

  • Update on corporate insolvency resolution process (CIRP) activities including the investor due diligence process, and

  • Update on CIRP related legal cases.


The CoC will also vote on approval of the CIRP costs, the sources said. The CoC will also vote on the required documents to be provided to the prospective resolution applicants, including an information memorandum requesting the resolution plan and evaluation matrix, the sources said.

Rajneesh Sharma did not respond to a request for comment.

– Dipika Lalwani, Poonam Bansal

 




UPDATE 14: Srei Infrastructure Finance 4th CoC Held on April 13

UPDATE 14: 8:00 p.m. ET 4/13/2022: Srei Infrastructure Finance Ltd., in a filing to the BSE Ltd. on April 13, detailed that the fourth meeting of the Consolidated Committee of Creditors (CoC) of Srei Infrastructure and Srei Equipment Finance Ltd. was convened and conducted on the same day from 11 a.m. onwards in Kolkata.

According to the announcement, the CoC discussed the following matters during the meeting:

  • Update regarding final list of prospective resolution applicants;

  • Update on the various going concern activities; and

  • Update on the way forward in the resolution process.


 




UPDATE 13: Srei Infrastructure Finance, Srei Equipment Finance to Hold 4th Consolidated CoC Meeting on April 13

UPDATE 13: 5:35 a.m. ET 4/12/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma have scheduled a fourth consolidated meeting of the companies’ committee of creditors (CoC) on April 13, according to two sources familiar with the matter.

The agenda for the meeting, according to the sources, is to provide updates:

  • regarding the final list of prospective resolution applicants;

  • on various going concern activities; and

  • on the way forward in the resolution process.


 




UPDATE 12: Srei Infrastructure Finance, Srei Equipment Finance Release Final List of Prospective Resolution Applicants

UPDATE 12: 5:33 a.m. ET 4/8/2022: Srei Infrastructure Finance and Srei Equipment Finance announced to the BSE Ltd. today, April 8, a final list of prospective resolution applicants as below:

  • VFSI Holdings Pte Ltd.

  • Vedanta Ltd.

  • Assets Care & Reconstruction Enterprise Ltd.

  • Assets Reconstruction Company (India) Ltd.

  • Diameter Trading Pvt Ltd.

  • International Asset Reconstruction Company Pvt. Ltd.

  • JM Financial Asset Reconstruction Company Ltd.

  • Arena Investors, LP

  • Jindal Power Ltd.

  • Prudent ARC Ltd.

  • Edelweiss Alternative Assets Advisors Ltd.

  • Riddhi Siddhi Gluco Biols Ltd. (lead partner) & Sherisha Technologies Pvt. Ltd.

  • Son Randhawa (lead partner) & Rajesh Viren Shah


 




UPDATE 11: Srei Infrastructure Finance, Srei Equipment Finance CoC Approves Commercial Clauses in RFRP, Evaluation Matrix

UPDATE 11: 9:34 a.m. ET 4/5/2022: Srei Infrastructure Finance Ltd. and Srei Equipment Finance Ltd.’s committee of creditors (CoC) have voted in favor of all commercial clauses in the request for revision of resolution plans (RFRP) such as cash distribution clause and the definition of minimum upfront cash recovery clause, earnest money deposit (EMD), amongst others, as was discussed during the third consolidated CoC meeting held on March 28, according to two sources with direct knowledge of the matter.

The commercial clause for RFRP states that the cash balance of the companies as of March 31, 2022, will be available for the CoC members along with any interest amount earned and received and any other profit and loss item until the date of the plan implementation, the sources explained. Cash collected after March 31 till the resolution plan implementation will belong to the resolution applicant, the sources added.

The CoC members have agreed to fix the EMDat INR 1.5 billion ($19.9 million), the sources said.

Separately, 85.62% of the CoC (by value) voted to approve the evaluation matrix as prepared and presented by the CoC advisors during the March 28 meeting, according to the sources.

The e-voting period was open between March 29 and April 1, the sources said.

Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma, did not respond to the request for comments.

– Poonam Bansal

 




UPDATE 10: Srei Infrastructure Finance, Srei Equipment Finance Hold 3rd Consolidated CoC Meeting March 28

UPDATE 10: 9:18 p.m. ET 3/29/2022: The third consolidated committee of creditors (CoC) meeting of the Srei Group was held March 28 from 2:30p.m. in Kolkata, according to a March 29 announcement to the BSE Ltd.

At the meeting the consolidated CoC discussed a presentation by SBI Capital Markets on the evaluation matrix under Regulation 2(1)(ha) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and an update on request for resolution plan (RFRP), the announcement states.

 




UPDATE 9: Srei Infrastructure Finance, Srei Equipment Finance Hold 2nd Consolidated CoC Meeting on March 23

UPDATE 9: 8:25 p.m. ET 3/23/2022: Srei Infrastructure Finance, announced to the BSE Ltd. March 23 that a second meeting of the consolidated committee of creditors (CoC) of SREI Group was convened on the same day.

According to the announcement, the consolidated CoC discussed the corporate insolvency resolution processes (CIRP) of Srei Infrastructure Finance and Srei Equipment Finance Ltd. and the status of the expression of interests (EoI) received by the companies.

 




UPDATE 8:  Srei Infrastructure Finance, Srei Equipment Finance Creditor Claims at INR 358.88B; Administrator Discusses Tentative CIRP Timeline at 1st Consolidated CoC Meet on March 17

UPDATE 8: 8:06 a.m. ET 3/23/2022: Srei Infrastructure Finance and Srei Equipment Finance’s administrator Rajneesh Sharma pegged the financial creditor's claims at INR 358.88 billion ($4.715 million) and presented it to the members of the consolidated committee of creditors (CoC) in the first consolidated meeting of CoC of both the companies which was held on March 17, according to two sources with direct knowledge of the matter.

The administrator also discussed the tentative timeline for the ongoing corporate insolvency resolution process (CIRP), according to sources.

The financial creditor’s consolidated claim under group insolvency stood at INR 358.88 billion , as shown below, according to the sources.

 

According to the sources, the administrator also updated that SEFL, since March 2020, did not regularly pay its pool lenders, which has resulted in a shortfall of payments to the pool lenders, (i.e. money collected from underlying pool accounts were not entirely paid to the pool lenders) in their capacity as assignee of the receivables.

The company management carried out a complete reconciliation from the pool inception date until July 31, 2021, and the shortfall amount is ~INR 8.48 billion, according to the sources. The shortfall amount relating to the period prior to the insolvency commencement date will now have to be claimed by the assignee banks, as per the sources with direct knowledge of the matter.

The administrator also presented the details of the securitization payment made from October 2021, to January 2022, given below:

At the meeting, the administrator said that the final list of resolution applications will be approved by April 6 and the resolution plan would tentatively be received by April 26, according to the sources with direct knowledge of the matter.

The administrator also flagged that given the “complexities of the business and need for in-depth diligence on the 150+ large borrowers account,” the prospective resolution applicants might seek “minimum two months time” for due diligence. Therefore, a 90-day extension may be sought from the National Company Law Tribunal (NCLT), Kolkata, according to the sources.

The tentative timeline for the ongoing CIRP process of SIFL and SEFL, according to the sources, is charted below:

At the meeting, the administrator also updated the lenders on the ongoing CIRP cases related to both companies, according to the sources:

Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma did not respond to the request for comments

– Poonam Bansal

 




UPDATE 7: SREI Infrastructure Finance, Srei Equipment Finance Releases Provisional List of Prospective Resolution Application; Vedanta, Jindal Power Among Applicants

UPDATE 7: 3:45 a.m. ET 3/23/2022: Srei Infrastructure Finance and Srei Equipment Finance, announced to the BSE Ltd. today, March 23, a provisional list of prospective resolution applicants, which is given below:

The last date of submission of final resolution plans by shortlisted applicants has been set for April 26, as reported.

 




UPDATE 6: Srei Infrastructure Finance, Srei Equipment Finance, to Hold 2nd Consolidated CoC Meeting on March 23, Administrator to Discuss Provisional List of Prospective Resolution Applicants

UPDATE 6: 5:16 a.m. ET 3/22/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma has scheduled a second consolidated meeting of the committee of creditors (CoC) of the companies (or the fifth meeting of CoC) on March 23, according to two sources familiar with the matter.

The agenda for the meeting, according to the sources, is as below.

  • To discuss the provisional list of prospective resolution applicants;

  • To discuss the way forward in the resolution process as per regulations, i.e. request for a resolution plan, evaluation matrix;

  • To take on record minutes of the fourth CoC meeting of Srei Infrastructure Finance and Srei Equipment Finance.


In the meeting, there would also be a vote to seek a one-time extension to complete the insolvency process, according to the document.

Consolidated members of CoC include Canara Bank, Union Bank of India, Punjab National Bank, HDFC Bank, ICICI Bank, Export-Import Bank of United States (represented by International Advisors), Société de Promotion et de Participation pour la Coopération Economique (Proparco), Axis Trusteeship, IDBI Trusteeship, among others.

Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma, did not respond to the request for comments

– Poonam Bansal

 




UPDATE 5: Srei Infrastructure Finance, Srei Equipment Finance to Hold Joint Lenders Meeting Today

UPDATE 5: 7:15 a.m. ET 3/17/2022: A meeting of joint lenders of Srei Infrastructure Finance and Srei Equipment Finance is scheduled for today, March 17, to discuss the provisional list of prospective resolution applicants, according to two sources with direct knowledge of the matter.

According to a BSE Ltd. filing on Feb. 25, a provisional list of prospective resolution applicants will be issued by March 22, and the last date to send in objections to the list is March 27, the filing shows. A final list of prospective applicants will be issued on April 6. The last date for submitting resolution plans is April 26, the filing states.

Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma, declined to comment/did not respond to request for comments

– Poonam Bansal, Dipika Lalwani

 




UPDATE 4: Srei Infrastructure, Srei Equipment Finance Administrator Invites EoIs for Resolution Plans, Last Date March 12; Resolution Plans to be Submitted by April 26

UPDATE 4: 7:49 p.m. ET 2/27/2022: Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma on Feb. 25 invited expressions of interest (EoI) to submit resolution plans for both non-bank lenders by March 12, according to a BSE Ltd. filing on Feb. 25.

A provisional list of prospective resolution applicants will be issued by March 22, and the last date to send in objections to the list is March 27, the filing shows. A final list of prospective applicants will be issued on April 6.

The last date for submitting resolution plans is April 26, the filing states.

 




UPDATE 3: NCLT Releases Order Approving Group Insolvency of Srei Infrastructure Finance, Srei Equipment Finance

UPDATE 3: 7:45 a.m. ET 2/18/2022: The National Company Law Tribunal (NCLT), Kolkata bench today, Feb. 18, released an order pronounced on Feb. 14, approving the group insolvency resolution of Srei Infrastructure Finance Ltd., and Srei Equipment Finance Ltd.




UPDATE 2: Srei Infrastructure Finance, Srei Equipment Finance Lenders Finalising Eligibility Criteria Before Inviting EoIs From Resolution Applicants Soon

UPDATE 2: 6:44 a.m. ET 2/18/2022: Lenders to Srei Infrastructure Finance Ltd. and its subsidiary Srei Equipment Finance Ltd. are preparing the eligibility criteria for prospective resolution applicants ahead of announcing an invitation to submit expressions of interest (EoIs) shortly, according to two sources with direct knowledge.

The eligibility criteria will be put to vote before soliciting EoIs, the sources said.

The lenders at the third CoC meeting on Feb. 9, decided that the criteria for inviting EoIs will be put to a vote after receiving views from CoC members and CoC counsel, as previously reported.

The proposed eligibility criteria for the prospective resolution applicants included in the Feb. 9 CoC meeting minutes seen by Reorg, are below.

  • For private, public limited company, limited liability partnership, body corporate, any other prospective resolution applicants, which is not a financial entity:

    • Minimum tangible net worth (TNW) shall be INR 10 billion ($133.3 million)

    • TNW shall be in an individual capacity or at the group level in the immediately preceding completed financial year.

    • Group may comprise of entities controlling or controlled 26% ownership, by or under common control with the prospective resolution applicant. The entities must have been part of the group for at least three years.





  • For financial entities including investment co., asset management co., alternative investment fund, fund house, private equity, investor, non-banking financial company, or any other eligible entities:

    • Minimum on book assets under management (AUM) is INR 40 billion or minimum committed funds of INR 20 billion.

    • On book AUM is defined as “total funds deployed”. For ARCs, AUM comprises their “own loan book + total security receipts managed.”

    • Prospective resolution applicants may rely on their parent’s commitment to providing funds to be deployed in Indian companies and/ or assets for complying with the minimum committed funds criteria.




It was proposed at the third CoC meeting that the prospective resolution applicants would be invited to submit expression of interests (EoIs) for the entire business of Srei Equipment Finance as well as its holding company, Srei Infrastructure Finance, as a going concern on the basis that the group insolvency application may be approved by the National Company Law Tribunal (NCLT), Kolkata bench, as reported.

The NCLT in an oral order passed on Feb. 14, approved group insolvency proceedings of Srei Infrastructure Finance and Srei Equipment Finance, the sources said. The written NCLT order is yet to be uploaded on its website.

Srei Infrastructure Finance and Srei Equipment Finance administrator Rajneesh Sharma did not respond to requests for comment.




UPDATE 1: Srei Equipment Finance December Collection at INR 5.23B, Higher Than November, October; CoC Proposes to Invite EoIs From Resolution Applicants on Srei Equipment, Srei Infrastructure Finance Entire Business; NCLT Reserves Order on Group Insolvency

UPDATE 1: 6:08 a.m. ET 2/14/2022: Indian non-banking finance companies (NBFC), Srei Infrastructure Finance’s subsidiary Srei Equipment Finance Ltd.’s (SEFL) December collection stood at INR 5.23 billion ($69.5 million), including collections worth INR 1.95 billion from accounts which are over 90 days past due, according to the minutes of a Feb. 9 committee of creditors (CoC) meeting, seen by Reorg. The minutes were released to the lenders on Feb. 11.

The December collections were higher compared to the collections in the months of November and October, the minutes of the Feb. 9 CoC meeting show, without providing data for the previous two months.

However, collections for the first nine months ended Dec. 31 stood at INR 30.67 billion, despite a reduction in manpower (collection and business team) to 644 people at the end of Dec. 31 from around 800 persons as of March 2021, the minutes of the Feb. 9 CoC meeting states.

Target versus actual collections made in the third quarter ended Dec. 31, according to the minutes of the Feb. 9 CoC meeting, is shown below.


































Target
(Oct 2021 to Mar 2022)
Actual
(Oct 2021 to Dec 2021)
Remarks
Upgradation of account considering collection INR 31 billion INR 24.74 billion Collection: INR 11.31 billion
Upgrade to standard: 13.29 billion
Lease rental reversal INR 500 million INR 320 million
Provision release INR 4 billion INR 1.94 billion Release owing to upgrade to standard accounts
Cost Reduction INR 200 million On target on annualized basis Advisor/ Manpower Cost reduced by INR 360 on annualized basis.


Prospective Resolution Applicants

It was proposed at the third CoC meeting that the prospective resolution applicants (PRAs) would be invited to submit an expression of interests (EoIs) for the entire business of Srei Equipment Finance as well as its holding company, Srei Infrastructure Finance Limited (SIFL) as a going concern on the basis that the group insolvency application may be approved by the National Company Law Tribunal, Kolkata bench, the minutes of the Feb. 9 CoC meeting show.

The application for consolidation or group insolvency process of Srei Infrastructure Finance and Srei Equipment was heard on Feb. 7 and has been reserved for final orders, according to the minutes of Feb. 9 CoC meeting.

The EoIs are not proposed to be accepted for selective assets of the non-banking finance companies, as the objective of the Insolvency and Bankruptcy Code (IBC) is to sell the corporate debtor as a “whole and as going concern,” according to the Feb. 9 CoC meeting minutes. The assets of the Srei Equipment Finance and Srei Infrastructure Finance are co-mingled and separating them would be practically and administratively difficult and some of the portfolios of assets might also not receive a positive response from PRAs, the administrator of both companies stated, as seen in the minutes.

However, flexibility could be provided while filing the EoIs where a consortium of two to three partners can bid for the corporate debtor according to their interest in the asset wise portfolios of a particular sector, the minutes of the Feb. 9 CoC meeting clarify.

The CoC agreed that after getting views from CoC members and CoC counsel the criteria for inviting EoIs will be put for voting as part of the third CoC voting item, the Feb. 9 CoC meeting minutes shows.

Srei Infrastructure Finance, Srei Equipment Finance administrator Rajneesh Sharma did not respond to requests for comment.

– Dipika Lalwani




Original Story 6:35 a.m. UTC on Feb. 8, 2022

Srei Infrastructure Finance, Srei Equipment Finance, CoC Meeting to be Held Feb. 9; Agenda to Update on Claims, Group Insolvency, Discuss, Approve Eligibility Criteria for Invitation of EoIs

Indian non-banking finance companies (NBFC), Srei Infrastructure Finance and its subsidiary Srei Equipment Finance’s third committee of creditors (CoC) meeting is to be held tomorrow, Feb. 9, according to two sources with direct knowledge.

The agenda of the meeting, according to the sources, includes:

  • To take on record the minutes of the second CoC meeting;

  • To update the CoC on the voting results of the second CoC meeting;

  • To update the CoC on status of claims and composition of CoC;

  • To update the CoC on group insolvency;

  • To discuss the eligibility criteria for publication of Form G, which is related to invitation of expression of interest. The lenders will also vote on approval of the eligibility criteria;

  • To update the CoC regarding the company on a going concern basis.


Meanwhile, a joint lenders meeting of Srei Infrastructure Finance and Srei Equipment Finance was held today, Jan. 8, to discuss the draft forensic audit report, the sources said.

On Jan. 25, the National Company Law Tribunal, Kolkata bench, on a petition filed by Srei Infrastructure’s erstwhile promoter Hemant Kanoria, ordered the forensic audit prepared by KPMG Assurance and Consulting Services LLP to be placed “in a sealed cover without dissemination for the time being.”

The tribunal directed the counsel of CoC, administrator of Srei Infrastructure and KPMG to file a written reply in a week’s time and adjourned the hearing to Feb. 1, the Jan. 25 order shows.

On Feb. 1 the NCLT ordered the discontinuation of the Jan. 25 order after reading the submissions made by KPMG, the CoC and the administrator of Srei Infrastructure. The NCLT will also hear the questions raised in the submissions on the jurisdiction of the adjudicating authority to prevent any action being taken by the lenders on the basis of the report submitted by KPMG, the Feb. 1 order states.

The NCLT adjourned the case for further hearing on Feb. 15, according to the Feb. 1 order.

Srei Infrastructure administrator Rajneesh Sharma did not respond to requests for comment.

Srei Infrastructure’s capital structure is below.













































































































































































































Srei Infrastructure Finance


03/31/2021

EBITDA Multiple

(INR in Millions)

Amount

Maturity

Rate

Book


NCDs

24,028.1



INR Term Loans from Banks

20,951.7



Foreign Currency Loans

9,027.8



INR Term Loans from Financial Institutions

15,444.8



Foreign Currency Loans from Financial Institutions

11,460.8



Working Capital

196,103.3



Collateral Borrowings

4,045.1



Long Term Infrastructure Bonds 1

386.7


9.000%

Foreign Currency Loans from Banks

3,058.2



Foreign Currency Loans from Financial Institutions

2,393.3



Inter Corporate Deposits

10.5



Subordinate Perpetual Bonds

4,719.3



Subordinate Bonds

21,470.4



Subordinate Loans

1,663.4



2260.1

356.3



Total Secured Debt

315,119.7


NCDs

21.3


10.000%

Total Unsecured Debt

21.3


Total Debt

315,141.0


Less: Cash and Equivalents

(4,351.0)

Net Debt

310,790.0


Plus: Market Capitalization

4,175.6

Enterprise Value

314,965.6


Operating Metrics

LTM Revenue

28,531.8


Liquidity

Plus: Cash and Equivalents

4,351.0

Total Liquidity

4,351.0

Notes:
1. Maturity Through 2027



– Dipika Lalwani
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