Mumbai: Acquisition of Twins sarei This will cost the companies a bit for the potential bidder.

Last week, Lenders passed a resolution that the cash balance in companies in their time transfer Two people aware of the development said that cash may not be part of the offer made by the applicant.

A senior executive of a consulting firm said this is different from the previous proposals, in which the bidders were beneficiaries of the proceeds earned during the Corporate Insolvency Resolution Process (CIRP), which helped them reduce acquisition costs.

On June 30, lenders passed a resolution that the entire cash and cash equivalents in the books of credit be passed on to creditors. A note circulated by administrator Rajnish Sharma said this amount would not be used for computing advance cash recovery for lenders.

Srei Equipment Finance And

Groups that are going through bankruptcy have a combined loan book of around ₹40,000 crore.

Currently, the total cash in Srei companies is only ₹600 crore, unlike Dewan Housing Finance (DHFL), where it was in thousands of crores, said one of the people. However, Shreya’s cash balance is likely to improve due to settlement from defaulting customers and prepayments from customers.

For DHFL, the cash balance was over Rs 10,000 crore when the lenders handed it over to the successful bidder, Piramal Capital and Housing, the person said. However, the RFP (Request for Proposal) issued by the lenders for DHFL stated that only the cash balance till the cut-off date would be distributed among the lenders, amounting to ₹3,000 crore.

Piramal had offered ₹37,250 crore to the lenders, which included ₹14,700 crore in the form of bonds, an upfront payment of ₹19,550 crore. The remaining ₹3,000 crore was cash in the company.

“Given that Srei is a complicated matter and mired in litigation, resolution may take some time. Thus lenders need to improve cash balances of a few thousand crores,” said an official of a bank of Shrei. hopefully.” As reported earlier, the lenders have extended the date for receipt of firm bids till July 30.

Meanwhile, Srei Group founder Hemant Kanoria and administrator are at loggerheads over classifying both companies as fraudulent accounts after a report by KPMG raised questions about Rs 8,158 crore of related-party transactions . Separately, BDO India, in a report, classified ₹2,512 crore as fraudulent transactions, saying it caused a loss of ₹513 crore to Srei Equipment Finance. Kanoria has called both the reports opaque.

Administrator Sharma has accepted claims of ₹30,000 crore from financial creditors.