Kolkata, Feb 10 (PTI) In a last ditch effort, Srei Group promoters have submitted a resolution plan with the Srei administrator under Section 12A of IBC, offering to pay off dues of around Rs 32,000 crore to creditors to withdraw their companies from the ongoing insolvency process.

Section 12A allows erstwhile management of corporate debtors to settle matters between creditors and withdraw cases under Corporate Insolvency Resolution Process ('CIRP').

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According to sources, the offer from the Kanorias was the highest with a net present value of Rs 7,000 crore, including upfront cash of Rs 3,500 crore.

While the rest of the entire debt will be repaid through a combination of financial instruments such as cash, Non-convertible debentures (NCDs), Optionally convertible debentures (OCDs), and equity over a period of five years, sources claimed.

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There is no official communication from the Kanorias.

If any resolution plan comes, it will be reviewed to see whether it qualifies under Section 12A of the IBC and then a decision will be taken by the CoC, bankers said.

Currently, the voting process for the three resolution plans submitted by Prospective Resolution Applicants (PRAs) for Srei Infrastructure Finance and Srei Equipment Finance is underway and will continue till February 14. The Committee of Creditors was supposed to meet on February 15 to finalise it.

After the completion of the challenge mechanism process, the Srei companies received three bids. The state-backed NARCL offered a Net Present Value (NPV) bid of Rs 5,555 crore.

Authum Investment and Infrastructure's bid was for Rs 5,526 crore while the consortium of Varde Partners and Arena Investors submitted a financial bid of approximately Rs 4,680 crore.

The former promoters tried to make a full payment with interest under Section 230 back in October 2020, but the offer was rejected.

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