NARCL pays Srei lenders promised upfront cash
NARCL), the winning bidder to take over the bankrupt Srei non-bank lenders has distributed ₹2,580 crore of cash accumulated in the company to creditors in the first step to implementing its resolution plan.
The cash was distributed as part of the ₹3,180 crore upfront payment promised by the bad bank in its winning bid and was credited to banks on Saturday, four people familiar with the details said.
The payment to lenders means that NARCL now has 45 days to complete the implementation of its plan including the issuance of debentures and preference shares to lenders which can be encashed based on future recoveries from the account.
«The distribution of cash is an important milestone in the implementation of the plan. NARCL will now move for documentation, issuance of debentures and equity stake to lenders as promised in its resolution plan,» said a person aware of the details.
Canara Bank is the largest beneficiary receiving ₹250 crore, followed by State Bank of India (SBI) at ₹220 crore, Punjab National Bank (PNB) at ₹215 crore and Union Bank of India at ₹200 crore.
As almost all lenders have fully provided for this loan, the recovery is likely to be written back to the banks' profits.
Individual lenders and NARCL could not be immediately reached for comment.
The Kolkata bench of the National Company Law Tribunal (NCLT) had approved NARCL's plan to take over Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) in August after lenders approved the government-backed bad bank's offer in February.
NARCL's offer was valued at ₹5,555 crore on a net present value (NPV) basis higher than the ₹5,526 crore offered by its nearest competitor Authum Investment & Infrastructure. The offer equates to a recovery of 17% on
