The Kolkata bench of the national company law tribunal (NCLT) has approved the Rs14,867.50 crore resolution plan submitted by state-backed National Asset Reconstruction Company (NARCL) for SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL), which are under the corporate insolvency resolution process (CIRP). This is the first acquisition by the government-owned NARCL. The resolution plan of NARCL was approved in February by the committee of creditors (CoC) of these two companies from the SREI group.
As per the approved resolution plan, it said, "an implementation and monitoring committee has been constituted (IMC), which is inter alia empowered to supervise the implementation of the Approved Resolution Plan and oversee the management of the affairs of the Companies as per the terms of the Approved Resolution Plan".
After acquiring Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) through NCLT, the National Asset Reconstruction Company Ltd (NARCL) is expected to retain only SIFL, and SEFL will be wound up after recovering its outstanding debt. NARCL has received approval from the Kolkata bench of the National Company Law Tribunal for its resolution plan, which was also approved by the Reserve Bank of India.
Get latest articles and stories on Latest News at LatestLY. After completion of the takeover of two Srei group firms through NCLT route, state-owned asset reconstruction company NARCL is expected to retain only one of the acquired companies, official sources said. Latest News | NARCL Likely to Wind Up Srei Group's Equipment Finance Arm; Retain SIFL for Business Continuity.
After completing the takeover of two companies of the Srei group through NCLT route, the National Asset Reconstruction Company Ltd (NARCL) is likely to retain only one of the acquired companies, the report said