CoC won't accept revised Varde-Arena offer for two Srei companies

Financial lenders include State Bank of India, Punjab and Sind Bank, Axis Bank, HDFC Bank, Union Bank of India, IDBI Bank, UCO Bank, and Indian Overseas Bank

The committee of creditors (CoC) of the two Srei companies has decided not to accept the revised bid by Varde-Arena which came after the close of the ‘Challenge Mechanism’ auction.

Varde-Arena had revised its offer upwards after National Asset Reconstruction Company (NARCL), the government-backed bad bank to take over stressed assets of lenders, emerged as the highest bidder in the auction that was conducted on Tuesday.

Sources close to the development said that the revised offer was not being accepted by the CoC on grounds of non-compliance of request for resolution plan (RFRP) rules. The CoC may ask Varde-Arena to