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Srei lenders to consider selling assets to ARCs to hasten recovery

Lenders to the defaulted Srei Group companies — and Srei Equipment Finance — are considering selling the sticky loan assets to the asset reconstruction companies to fasttrack recovery as they do not expect any quick resolution of the debt through the bankruptcy court.

A joint lenders’ meeting will take place on Monday to consider this,

managing director Soma Sankara Prasad said. Bank is one of the major lenders to the Srei companies with Rs 1100 crore outstanding loans.

“I do not see any quick resolution of the Srei group companies. We are exploring all other options to recover the dues,” he said Friday. He said that even if prospective investors for Srei’s resolution plan place their bids within the extended deadline of August 10, the resolution is unlikely to happen before December given the procedural issues.

Uco’s Prasad said that lenders would explore selling the assets to ARCs if they get better recovery chances.

On the request of the prospective bidders for Srei’s resolution, the lenders have extended the bid submission deadline to August 10. Arena Investors, Varde Partners and another potential bidder are said to be actively considering submitting separate bids.

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