NCLT clears bad bank plan for Srei cos’ resolution

Mumbai: The Kolkata bench of the National Company Law Tribunal (NCLT) on Friday approved state-owned National Asset Reconstruction Company Ltd’s (NARCL’s) resolution plan for Srei Infrastructure Finance and Srei Equipment Finance as part of the corporate insolvency resolution process.

A bench led by Justices Rohit Kapoor and Balraj Joshi, while approving the resolution plan, said the tribunal is satisfied with the resolution plan since it is in accordance with the Insolvency and Bankruptcy Code. Other necessary regulatory approvals from the Reserve Bank of India and the Competition Commission of India have already been received by NARCL, the successful resolution applicant.

The proposed transaction involves the acquisition of a majority of equity share capital of Srei by NARCL and IDRCL (India Debt Resolution Company Ltd).

In February, lenders to the debt-laden firm had approved NARCL’s bid with 89.2% majority from the verified creditors. NARCL had offered a net present value bid of ₹5,555 crore. The committee of creditors had stated that the plan met the requirement of being viable and feasible for revival of the company.

Apart from NARCL, Authum Investment, and a consortium of Varde Partners and Arena Investors had submitted resolution plans.