Srei News: Srei Lenders Extend Submission Deadline to July 30
The creditors’ committee made both decisions on June 24, the people said. Earlier, Rajneesh Sharma, the administrator of
and Srei Equipment Finance, had set June 30 as the deadline for accepting the resolution plans.
Lenders generally undertake a TEV study before restructuring a debt account, as this helps to understand the degree of risk associated with a project. In this case, the TEV study would allow buyers to assess the upside potential as well as the risk of acquiring the business, said one person quoted above.
The administrator did not respond to ET’s questions.
Various potential resolution candidates “requested an extension of the deadline given the complexity of the due diligence process,” said a memo circulated by the administrator.
“The lenders are hoping to complete the process by September 4, but that seems like wishful thinking given the series of litigation involved in this case,” said a senior bank executive with debts to the two Srei companies. .
“As things stand, a battle is brewing between the admin and Srei’s promoter, Hemant Kanoria, who goes the extra mile to prevent the accounts from being classified as fraudulent,” a third person in the know said. of evolution.
A fortnight ago, the administrator informed the exchange that a transaction auditor, BDO India, had reported a fraudulent transaction in the case of Srei Equipment Finance amounting to ₹2,512 crore and a notional loss of ₹513, ₹8 crore.
The Kanoria Foundation issued a statement questioning the methodology adopted by BDO, calling the approach opaque.
In April, the developer had approached the banking regulator to advise lenders not to act on KPMG’s report which raised questions about ₹8,158 crore in related party transactions.
Separately, following a petition by Kanoria, the Delhi High Court on April 22 ordered the lenders not to take any action against the Srei sister companies until the next hearing after Punjab &
classified both accounts as fraud. The hearing is scheduled for August 23.
Financial creditors have about ₹32,000 crore in claims against the two indebted companies.