Srei promoters submit resolution plan to exit insolvency process

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').

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.

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 t