Lenders for Srei group companies accept EoI by AM Mining India

The committee of creditors (CoC) for Srei group companies has accepted an expression of interest (EoI) submitted by AM Mining India Private Limited, an ArcelorMittal affiliate.

In a filing, Srei Infrastructure informed the stock exchanges that the final list of prospective resolution applicants (PRAs) had been revised to include the name of one PRA. The revised list includes AM Mining. 

The company has been added to the list of 13 PRAs for Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), which are undergoing insolvency proceedings. ArcelorMittal declined to comment. 

AM Mining India had submitted its EoI on September 27 after the deadline for submission expired. But it has been allowed on grounds of value maximisation. 

“After considering all aspects, including the value maximisation for all stakeholders, including but not limited to banks, financial institutions and retail debenture holders, the CoC approved a resolution to include the name of AM Mining India Private Limited in the final list of prospective resolution applicants,” a note by the Srei administrator said.

Srei group companies — SIFL and SEFL — had received two resolution plans. Arena Investors LP and Varde Partners had made a joint bid. The other bid was from Shon Randhawa and Rajesh Viren Shah combine. However, issues emerged with the earnest money deposit and the CoC ultimately decided in favour of issuing a fresh request for resolution plan (RFRP). 

Sources indicated that issuing a fresh RFRP meant that the process was being opened to EoI participants.

The other PRAs include Vedanta, Asset Reconstruction Company (India), Jindal Power and Edelweiss Alternative Asset Advisors, among others. 

Incidentally, there is an ongoing case between ArcelorMittal and Srei over a critical ancillary unit of ArcelorMittal Nippon Steel India. It is a 253-km slurry pipeline owned and operated by Odisha Slurry Pipeline Infrastructure (OSPIL). Srei Infrastructure was a creditor.

ArcelorMittal India Private Ltd’s resolution plan for OSPIL was approved by National Company Law Tribunal (NCLT) in 2020 and National Company Law Appellate Tribunal (NCLAT) earlier this year.

However, Srei Infrastructure moved the Supreme Court against the NCLAT order approving ArcelorMittal’s resolution plan for OSPIL. The appellate tribunal had also dismissed a raft of appeals, including those filed by Srei entities.