NCLAT dismisses Authum Investment’s appeal contesting the Srei companies resolution.

NCLAT

The non-bank financier Authum Investment and Infrastructure filed an appeal with the National Company Law Appellate Tribunal, contesting a bankruptcy tribunal ruling that had denied its objections to a resolution plan for two Srei companies. The appeal was denied.

The non-bank financier Authum Investment and Infrastructure filed an appeal with the National Company Law Appellate Tribunal, contesting a bankruptcy tribunal ruling that had denied its objections to a resolution plan for two Srei companies. The appeal was denied.

In August, National Asset Reconstruction Co. Ltd. (nclat) approved a resolution plan for Srei Infrastructure Finance Ltd. (SIFL) and Srei Equipment Finance Ltd. (SEFL) that was submitted.nclat

For the two Srei companies, nclat resolution plan offered a net present value bid of ₹5,555 crore, which the lenders accepted. The other two bidders were Authum (₹5,526 crore) and Varde Partners including Arena Investors (₹4,680 crore).

A resolution plan for Srei Infrastructure Finance Ltd. and Srei Equipment Finance Ltd. submitted by National Asset Reconstruction Co. Ltd. was accepted by the National Company Law Tribunal in August.

One of the bidders for the two Srei companies was Authum Investment and Infrastructure.
One of the bidders for the two Srei companies was Authum Investment and Infrastructure.
MUMBAI: Non-bank financier Authum Investment and Infrastructure appealed a bankruptcy tribunal ruling that had denied its objections to a resolution plan for two Srei companies, but the National Company Law Appellate Tribunal dismissed the appeal.

An August resolution plan for Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) was approved by the National Company Law Tribunal through National Asset Reconstruction Co. Ltd nclat.

Authum, a bidder for one of the two companies going through the insolvency process, had also submitted a plea, which was denied by the tribunal at the time. After receiving an order from the tribunal, Authum went to NCLAT.

The lenders approved the ₹5,555 crore net present value bid that NARCL’s resolution plan offered for the two Srei companies. The other two bidders were Authum, with a bid of ₹5,526 crore, and Varde Partners and Arena Investors, with a bid of ₹4,680 crore.

The adjudicating authority’s (NCLAT) order rejecting the applications is free of errors, according to a 42-page ruling issued on January 5 by a bench of NCLAT justices led by Justices Ashok Bhushan and Barun Mitra.

The NCLAT stated that the committee of creditors’ business judgment guided the tribunal’s approval of the resolution plan and that there was no reason to challenge the ruling. The appeal is without merit. It stated that the appeal is denied.

The Reserve Bank of India removed the two Srei companies’ boards in October 2021 due to issues with governance and repayment defaults. The regulator then made contact with the NCLT’s Kolkata bench to start the insolvency process.

Rajneesh Sharma, a former chief general manager of Bank of Baroda, was named administrator after the tribunal admitted the companies for insolvency proceedings.

A resolution plan for Srei Infrastructure Finance Ltd. and Srei Equipment Finance Ltd. submitted by National Asset Reconstruction Co. Ltd. was accepted by the National Company Law Tribunal in August.

One of the bidders for the two Srei companies was Authum Investment and Infrastructure.
One of the bidders for the two Srei companies was Authum Investment and Infrastructure.

Non-bank financier Authum Investment and Infrastructure appealed a bankruptcy tribunal ruling that had denied its objections to a resolution plan for two Srei companies, but the National Company Law Appellate Tribunal dismissed the appeal.