InvestorQ : What is the latest update on the SREI Finance Group? I hear they appear to be deep in financial troubles?
Sam Eswaran made post

What is the latest update on the SREI Finance Group? I hear they appear to be deep in financial troubles?

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Moii Chavate answered.
2 months ago
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Currently, there is a battle over the internal corporate restructuring that is proposed by the group The key lenders to the group are opposed to the move to consolidate the group’s lending business into SREI Equipment Finance, as it would compromise their interests in the company. To add to the worries, the company has also confirmed that its company secretary gad resigned, which is never normally a good signal.

The lenders to the SREI group had recently appointed KPMG to conduct a forensic audit of SREI Equipment Finance and SREI Infrastructure Finance, the two companies that are currently in the eye of the storm. Before accepting the debt restructuring proposed by the promoters, the lenders wanted a forensic audit done. This is a major challenge as SREI owes big money to the banks.

Just look at the numbers. SREI Infrastructure Finance owes Rs.11,118 crore to banks while SREI Equipment Finance owes Rs.16,912 crore. Both the firms have been recently downgraded by CARE. Lenders had objected saying that the consolidation of the group lending business into SREI Equipment Finance was implemented without the consent of all lenders who were a part of the consortium.

In December 2020, SREI group was granted a repayment moratorium of 6 months by the Kolkata bench of the National Company Law Tribunal or NCLT. The due date for repayment of loans was extended from 01 January to 30 June. This order has also been challenged by the bond holders and credit rating agencies on grounds of fairness at the National Company Law Appellate Tribunal, also known as NCLAT.

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