ArcelorMittal has submitted an expression of interest (EOI) to acquire Srei Equipment Finance and Srei Infra Finance which are undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC), CNBC-TV18 reported on September 28, citing sources.
Srei lenders have invited a fresh round of bids for these companies after a dispute with earlier bidders over earnest money deposit (EMD).
Varde Arena and an HNI investor consortium led by Shon Randhawa were the only two bidders in the first round. Varde Partners and Arena Investors LP had jointly submitted a bid, while another bid was from the investors' consortium -- Shon Randhawa and Rajesh Viren Shah.
Varde-Arena as part of their joint bid for the twin Srei Infrastructure Finance and Srei Equipment Finance had paid around Rs 150 crore as EMD, while the Shon Randhawa consortium had put conditions on EMD.
The cash component will play a vital role for the Committee of Creditors (CoC) to decide upon selecting the resolution plan besides other factors, PTI reported on August 31. citing the sources involved in the process.
As per the broad resolution plans submitted, both bids from Varde-Arena and Shon Randhawa consortium are neck and neck in the race.
The Reserve Bank of India had in October last year superseded the boards of Srei Infra Finance and its wholly-owned subsidiary Srei Equipment Finance, and a joint resolution is taking place for these companies for their outstanding liabilities of about Rs 32,000 crore.
Transaction advisor BDO India had flagged fraud transactions worth over Rs 5,000 crore in these two companies.
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