future: Future, Srei Cos among 17 accounts in NARCL’s buy list

The government-promoted National Asset Reconstruction Company (NARCL) has offered to acquire 17 distressed companies, including five Future group companies and two Srei accounts, from lenders, two people aware of the development said.

The ARC a week ago circulated a list among lenders of 17 companies with total outstanding loans of ₹93,240 crore.

ET reviewed a copy of the list. NARCL could not be reached for comments.

NARCL has prepared a fresh list in an effort to revive the ARC, the formation of which was announced in union budget 2021 but has failed to acquire a single loan yet. “Most of the cases from the earlier list were nearly resolved,” one of the persons cited above said.

The largest account on the list is Srei Equipment Finance with an outstanding loan of Rs 22,485 crore. The list also includes

(Rs 10,330 crore outstanding), (Rs 10,700 crore), Future Entertainment (Rs 5,800 crore), Future Lifestyles Fashions (Rs 1,781 crore), (Rs310 crore), and Future Consumers (Rs 281 crore).

Lenders are awaiting NCLT‘s order to admit Future Retail for insolvency proceedings. In the case of the other four Future companies, promoter Kishore Biyani is in talks with lenders for an out-of-court resolution.

The two Srei companies are undergoing insolvency proceedings.

is the second largest account listed, with outstanding loans of Rs 20,167 crore. Its affiliate, Jaypee Cement, with Rs 527 crore loan, is also listed. Lenders are in talks with promoter Manoj Gaur, seeking out-of-court resolution for both these accounts, people cited above said.

Other accounts in the list include three EPC (engineering, procurement and construction) companies –

(Rs 2,972 crore), MBL Infrastructure (Rs 1,642 crore) and Soma Enterprises (Rs 4,492 crore). The remaining companies include Sugars, , Shakti Bhog Foods, P C Jeweller Ltd and Panipat Jalandhar NH-1 Tollways.

As per the proposal, NARCL would acquire the assets under 15:85 structure wherein 15% of the consideration would be paid upfront and the remaining 85% would be in the form of security receipt (SR). NARCL would redeem 85% of SRs issued to banks since it is backed by a government guarantee.