The erstwhile promoters of the Srei group have submitted a fresh proposal to the lenders through Adisri Commercial, marking the highest offer so far in the corporate insolvency process of the two non-bank finance companies — Srei Infrastructure Finance and Srei Equipment Finance.

The offer includes upfront cash of Rs 3,500 crore (which is more than the Rs 3,000 crore minimum threshold in the challenge mechanism) with a net present value of Rs 7,000 crore.

Earlier in the challenge mechanism, government-backed National Asset Reconstruction Company had offered Rs 5,555 crore, emerging as the lead bidder ahead of Authum with a bid of Rs 5,526 crore in net present value terms.

The third bidder in the challenge mechanism was a consortium of Varde Partners and Arena Investors, with a bid of around Rs 4,680 crore.

The promoters have proposed to repay the entire claim of Rs 32,000 crore using multiple financial instruments such as upfront cash, non convertible debentures, optionally convertible debentures and equity over time.

Sources said the promoters feel existing resolution plans available with the committee of creditors fail to offer a fair and equitable consideration to both creditors and shareholders of Srei companies and there has been severe erosion of values since the company was taken over by the current administration.

The erstwhile promoters have cited section 12A of the Insolvency and Bankruptcy Code whereby the adjudicating authority may allow withdrawal of application with an approval of 90 per cent of the voting share of the committee of creditors.

The proposal comes ahead of the disclosure of voting results of the committee of creditors expected next week.

Earlier in October 2020,the promoters placed a plan to repay the lenders utilising section 230 of Companies Act.

But the plan was rejected by the lenders without any explanation. Insolvency proceedings against SIFL and its subsidiary SEFL commenced in October 2021 after insolvency petitions filed by the Reserve Bank of India were approved by the Calcutta bench of the National Company Law Tribunal (NCLT).

The total admitted claims of the financial creditors of the two NBFCs are Rs 32,750.22 crore.

Canara Bank, UnionBank of India, Punjab National Bank, State Bank of India, Bank of Baroda, Indian Bank, Punjab and Sind Bank, Central Bank of India, Uco Bank and Bank of India are the top 10 financial creditors of the Srei NBFCs.