According to a CNBC-TV18 report on September 28, ArcelorMittal has submitted an Expression of Interest (EoI) to acquire Srei Equipment Finance and Srei Infra Finance, which are undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC).

The Srei lender has invited the companies to a new round of bids following a dispute with early bidders over earnest money deposit (EMD).

Varde Arena and a consortium of HNI investors led by Shon Randhawa were the only two bidders in the first round. Varde Partners and Arena Investors LP jointly submitted one bid, while the other came from a consortium of investors – Shon Randhawa and Rajesh Viren Shah.

Varde-Arena paid around Rs 150 crore as EMD as part of their joint bid for Srei Infrastructure Finance and Srei Equipment Finance, while the Shon Randhawa consortium placed conditions on EMD.

Among other factors, the cash component will play an important role in the committee of creditors (CoC)’s decision to choose a settlement, PTI reported on August 31. The bids from the Varde-Arena and Shon Randhawa consortiums were neck and neck in the competition, according to the large number of resolution plans submitted.

The RBI, which replaced the boards of Srei Infra Finance and its wholly-owned subsidiary Srei Equipment Finance in October last year, is currently making a joint resolution on the two companies’ outstanding debt of around Rs 32,000 crore. Transaction advisor BDO India has flagged fraudulent transactions worth more than Rs 5,000 crore between the two companies.