Srei Creditors May Consider Joint Insolvency Proceeding

Financial creditors of two non-bank finance companies of the Srei group — Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) — may evaluate the prospect of a consolidated insolvency proceeding, reported. The corporate insolvency resolution process has been initiated in the two companies separately and two cases have been admitted with the Calcutta bench of the NCLT after the RBI superseded their boards on October 4, 2021. A consolidated insolvency proceeding may garner more interest among potential bidders than individual companies. Sources said the lenders are keen to look into all possibilities that will benefit all the stakeholders. The total liabilities are around Rs 18,000 crore of bank loans and another Rs 10,000 crore of external commercial borrowings and bonds. The corporate insolvency resolution process will help the lenders recover debt but there are concerns over haircut. Read more.