Home / Companies / News /  Brickwork awaits NCLAT order before any rating action on Srei

Brickwork Ratings has said it will take ratings action on Srei group companies after the National Company Law Appellate Tribunal (NCLAT) rules on its petition in the loan moratorium case.

Brickwork and several others had separately moved NCLAT against the National Company Law Tribunal (NCLT) order that allowed a six-month repayment moratorium to the Srei group. On 6 March, Care Ratings downgraded Srei’s ratings on 29,240.3 crore debt to “default", after a favourable NCLAT order in a separate case it filed.

“Brickwork Ratings (BWR) would like to update that even BWR has appealed against the said NCLT order dated 30 December 2020. On 10 March 2021, the NCLAT, New Delhi heard the appeal and has directed that the matter be placed before the acting chairperson for listing this case before the appropriate bench…," the rating agency said in a statement Saturday.

While Care Ratings classified debt of 17,411.96 in Srei Equipment Finance Ltd as ‘D’ or default, it also downgraded another 11,828.34 debt on the books of Srei Infrastructure Finance Ltd to the ‘D’ category.

The Srei group was in December granted a moratorium on repayments by NCLT’s Kolkata bench from 1 January to 30 June. Under the scheme of arrangement, the company has proposed to make repayments to various categories of debenture holders over an extended period.

On 23 March, the NCLAT will hear another case filed by Srei group’s bondholders challenging the NCLT order. The non-bank financier missed repayments on 11 instances between 11 January and 10 March, showed data. Debenture trustees Axis Trustee Services Ltd and Catalyst Trusteeship Ltd which represent bondholders have jointly moved the tribunal against the NCLT order, which has impacted retail and institutional investors alike.

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