You are here: Home » Companies » News
Business Standard

Srei cos administrator apprises lenders about status of resolution process

Last month, the Reserve Bank had superseded the boards of Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL)

Topics
Srei | Srei group | RBI

Press Trust of India  |  New Delhi 

SREI

The administrator of two group companies, in the first meeting of the committee of creditors on Tuesday, apprised them about the status of the firms' corporate insolvency resolution process, as per regulatory filings.

Last month, the Reserve Bank had superseded the boards of Infrastructure Finance Ltd (SIFL) and Equipment Finance Ltd (SEFL) and appointed Rajneesh Sharma as the administrator of the two crisis-ridden firms.

Post this, appointed a three-member advisory committee to assist Sharma in the corporate insolvency resolution process (CIRP) of the two .

On October 8, the Reserve Bank (RBI) bank had filed applications for initiation of corporate insolvency resolution process against SIFL and SEFL at the Kolkata Bench of the National Company Law Tribunal (NCLT).

"We wish to inform you that the 1st (first) meeting of the Committee of Creditors of the company was duly convened and conducted on Tuesday, 2nd November, 2021 at 11 :00 A.M. in Kolkata," SIFL said in a regulatory filing on Wednesday.

In a similarly worded exchange filing, SEFL said the first meeting of the committee of creditors of the company was convened on Tuesday at 2 PM.

"At the aforesaid meeting, the administrator of the company apprised the Committee of Creditors about the status of CIRP since the initiation, composition of committee of creditors based on the claims received, various aspects relating to the CIRP, going concern operations of the company and the way forward in terms of the activities/milestones as stipulated under the code," they said in their respective exchange filings.

The corporate insolvency resolution process has been initiated in both the under the Insolvency and Bankruptcy Code (IBC), 2016.

Srei Infrastructure Finance Ltd (SIFL) is the parent company of SEFL.

The economic stress caused due to the pandmeic led to an asset-liability mismatch in the Srei group, which resulted in the bankers taking control of the finances of Srei in order to recover their dues.

Srei group, which mainly caters to the MSME and infrastructure sectors, owes around Rs 18,000 crore to around 15 lenders, including Axis Bank, UCO Bank and State Bank of India, and has another nearly Rs 10,000 crore of external commercial borrowings and bonds.

The Bombay High Court on October 7 had dismissed Srei group's plea against the action on SIFL and SEFL.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 03 2021. 18:53 IST
RECOMMENDED FOR YOU
.