NCLT to continue hearing on Srei Group’s insolvency case today

The Kolkata National Corporations Law Tribunal (NCLT) will continue to hear lawyers for Srei Group of Companies on behalf of the Administrator today. Advisers to the Consolidated Creditors Committee (CoC) and successful solution applicant, National Asset Reconstruction Corporation (NARCL), will also present their arguments on Monday.

The lawyer who appeared to the Director of Srei Group of Companies, last week, argued that there had been no mitigation or adjustment made and all the plans submitted were done according to the same evaluation matrix. Furthermore, he said, all CoC-compliant settlement plans were shared by the administrator before they were put up for a vote and if something was “wrong” with the plan, it should be flagged at that time and not now when the voting process is complete.

He was presenting his arguments against the allegations of the attorney representing on behalf of the bond shareholders, who are also part of the Code of Conduct, Who said earlier that “there is no certainty of recovery” of the underlying assets from the debtor company and thus the payment to creditors may be affected.

The bondholders’ attorney argued that according to the Final Decision Scheme presented by NARCL, the security receipts to be issued to creditors would be by redemption of the Non-Convertible Secured Notes and there was absolutely no guarantee that they could be redeemed at the expected price.

After the completion of the Challenge Mechanism process, the Srei Group entities received three bids. Insolvent Srei’s CCC approved NARCL’s offer of Rs. 5,555 crore on NPV terms, including advance cash of Rs. 3,180 crore, with the highest vote (89.25 per cent) among the bidders. The decision plan put forward by Authum Investment and Infrastructure (₹5,526 crore on NPV terms) got 84.86 per cent of the vote, and the consortium of Varde Partners and Arena Investors (₹4,680 crore on NPV terms) got a vote of 9 per cent. .