Banking News

NARCL finalises acquisition of two SREI companies


The National Asset Reconstruction Company (NARCL) has finalised the acquisition of the two SREI companies – SREI Equipment Finance and SREI Infrastructure Finance — under the Insolvency and Bankruptcy Code (IBC), paving the way for resolution of a Rs 32700-crore debt.

The deal was inken Friday. NARCL emerged the winning bidder under the IBC process in August.

NARCL has paid about 50% of the committed resolution amount to the lending consortium as a part of the resolution plan.

“This would be one of the largest time-bound resolutions in recent years,” NARCL managing director N Sundar was quoted as saying in a press statement issued by the asset reconstruction company.

“We are aiming to revive SREI’s equipment lending business and work with all stakeholders to derive optimum value for both the entities. Our endeavour would also be to maximize recovery for the lenders,” he said.

NARCL was formed by the government in 2021 with public sector banks owning a majority stake in NARCL, while the balance is with private banks. Canara Bank is the sponsor bank. It has been set up with a strategic initiative to clean up banks’ legacy stressed assets valued Rs 500 crore and above. It has so far aggregated debt of over Rs 25500 crore covering 6 assets.The SREI resolution plan received approval from the National Company Law Tribunal (NCLT), the Reserve Bank of India, and the Competition Commission of India.


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