It may take a tad longer for the Kolkata bench of National Company Law Tribunal (NCLT) to consider the final bid submitted by National Asset Reconstruction Company (NARCL) for the insolvent Srei group companies as it will first have to hear the arguments by the counsels for the consolidated Committee of Creditors (CoC) and administrator on the evaluation matrix.
It is to be noted that Authum Investment and Infrastructure, whose financial bid was adjudged the second-highest in terms of NPV, had filed a petition before the Kolkata bench of NCLT. questioning the evaluation matrix. The counsel appearing on behalf of Authum, on Wednesday, argued that the evaluation matrix gave NARCL a higher score in the bid submitted for the Srei group companies. The counsel also alleged that a relaxation in the evaluation matrix was made for an isolated resolution applicant, namely NARCL.
The NCLT will continue hearing the matter on Thursday. The counsels for CoC, administrator as well as the successful resolution applicant, namely NARCL, are expected to present their arguments on Thursday.
Also read:Srei insolvency: Consideration of NARCL’s resolution plan may get delayed further
In an earlier hearing, the counsel appearing on behalf of debenture shareholders said there was “no certainty of recovery” from the underlying assets of the corporate debtor, namely Srei, and hence the repayment to creditors could be impacted.
The counsel further argued that as per the final resolution plan submitted by NARCL, the security receipts issued to creditors would be through redemption of secured non-convertible debentures, and there was no guarantee of redemption at the expected price.
Following the completion of the challenge mechanism process, the Srei group entities had received three bids. The consolidated CoC for two insolvent Srei companies approved NARCL’s offer of ₹5,555 crore in NPV terms, including upfront cash of ₹3,180 crore, with the highest voting (89.25 per cent). The resolution plan submitted by Authum Investment and Infrastructure (₹5,526 crore in NPV terms) received 84.86 per cent vote, while the consortium of Varde Partners and Arena Investors (₹4,680 crore in NPV terms) got 9 per cent vote.