The voting results on the EoI documents, prepared by the Administrator, Rajneesh Sharma, are expected by February 25, sources familiar with the matter told FE.
The Administrator of Srei Infrastructure Finance (SIFL) and its wholly-owned subsidiary Srei Equipment Finance (SEFL) has begun the process of voting to get approvals of the financial creditors of the two debt-laden companies for Expression of Interest (EoI) documents to be floated to the prospective bidders as a part of the consolidated corporate insolvency resolution processes.
The voting results on the EoI documents, prepared by the Administrator, Rajneesh Sharma, are expected by February 25, sources familiar with the matter told FE.
“The creditors have been urged to vote on the EoI documents for a group insolvency. The process of voting started on February 18. As per the norms, six working days have been given to the committee of creditors (CoCs) of SIFL and SEFL to vote on the EoI,” the sources said.
“The Committee of Creditors of SIFL and SEFL are currently voting separately. It is to maintain the dignity of both the CoCs,” they said, adding the administrator will later call meetings of both the CoCs to form an integrated Comittee of Creditors required for the consolidated corporate insolvency resolution processes (CIRPs). A mail sent to Sharma went unanswered till the time of going to press.
As the Kolkata bench of the National Company Law Tribunal (NCLT) has given its approval for consolidation of the CIRPs of SIFL and SEFL in terms of the provisions of the Insolvency and Bankruptcy Code (IBC), Sharma will be constituting a unitary and integrated CoC to conduct CIRP. The administrator will be conducting all requisite processes in a concerted manner and call for consolidated resolution plans for both the NBFCs.
RBI-appointed Administrator earlier filed applications before the NCLT, seeking prayer for consolidation of the resolution processes for the two companies as it is expected to lead to value protection and value maximisation for the stakeholders.
“The time taken for judicial determination of the request for consolidation shall stand exclusion from the CIRP timelines. In other words, the total of 56 days, which is the period from December 21, 2021 to February 14, 2022, the date on which this order for consolidation of the two CIRPs has been passed, shall stand excluded while computing the 180-day timeline prescribed under Section 12 of the Code,” a two-member NCLT bench of justices Rajasekhar V.K. and Balraj Joshi said while passing an order approving the consolidation appeal.
“We are convinced that commonality of directorship, of control, of assets, of near-total interdependence, and the fact that both the companies were being run in such a seamless fashion as to be virtually indistinguishable and inseparable from each other, should be more than adequate reason to order consolidation of the CIRPs of SIFL and SEFL. Added to this mix is the fact that there is a common Administrator and Advisory Committee appointed by the RBI to run the two companies, and we have an unimpeachable case for ordering consolidation,” the bench said in its order dated February 14. This order was, however, uploaded on the NCLT websites on February 18.
“The NCLT has appreciated the contents of the plaint, filed by the Administrator, seeking approval for a consolidated CIRP. After getting the tribunal’s approval, the requisite processes have immediately been started,” the sources cited above said.
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