Troubled Srei Group companies sort out some stuck accounts

Kolkata, Aug 1 (PTI) Srei Group companies, which are under the insolvency resolution process, have settled some NPA cases along with receiving cash. This has helped the company in solving cases worth Rs 5,000 crore.

This situation has arisen after the administrator appointed by the Reserve Bank of India (RBI) looked into the matter of companies in trouble. Official sources gave this information on Monday.

Debt-ridden Srei Infrastructure Finance Ltd. (SIFL) and Srei Equipment Finance Ltd. The last date for submission of financial bids for acquisition of SEFL is August 10. Therefore, improvement in cash receipts and NPA (Non-Performing Asset) accounts is crucial.

Sources said the auditors are likely to submit their final report on the transaction by August 6.

He said that the last date for submission of bids was earlier extended. This was due to non-availability of Transaction Advisor report and transaction complications regarding misappropriation of funds.

Sources privy to the matter said that initially there were 14 claimants, who in March had submitted expressions of interest for acquisition of Srei group companies under the Insolvency and Bankruptcy Code.

But, now only foreign bidders… New York-based Arena Investors LP Ltd, VFSI Holdings affiliated to Verde Investments and Shon Randhawa and his partners… are expected to participate in the financial bid.

The Reserve Bank had in October last year dissolved the board of directors of SIFL and its wholly-owned subsidiary SEFL.

Rajnish Sharma, former general manager of Bank of Baroda, was appointed as the administrator to look into the affairs of companies in trouble.

Official sources told PTI, “Since October 2021, a total of more than 1,900 cash has been received. Also, the stranded accounts of both the companies worth Rs 3,000 crore have been kept in the second category. This has brought down the NPAs of the company and will increase valuations.

“Around 1,000 employees of the companies have not been laid off but unnecessary expenses have been brought down from Rs 30 crore a month to Rs 12 crore a month,” sources said.