SREI Equipment Finance: Axis Trustee Services Seeks Bondholders’ Views on Challenging NCLT’s Moratorium Order
Axis Trustee Services Ltd, which is the debenture trustee for various listed, secured, and unsecured non-convertible debentures (NCDs) issued by Srei Equipment Finance Ltd (SEFL) has sought the views of bondholders on whether to challenge the moratorium order passed by the National Company Law Tribunal (NCLT) Kolkata bench.
Axis Trustee Services has sent an email today to all bondholders saying “As the debt payments are not being made by SEFL, we seek your views on whether we should challenge the NCLT Order or not.”
Axis Trustee Services has shared link (to a web-form) in the email to bondholders for submitting their responses. See web form below:
As reported by Moneylife earlier this week, SEFL has stopped making debt payments
(interest and redemption of principal amounts) with effect from 1 January 2021 after it went to NCLT’s Kolkata bench and obtained a blanket moratorium order in its favour.
Meanwhile, Catalyst Trusteeship, the other debenture trustee for SREI group’s various other series’ of NCDs has maintained a studied silence over the matter. Catalyst Trusteeship emailed copies of the NCLT order to bondholders last week almost a week after the orders were passed and the first date of interest ‘default’ had already gone by.
Today’s email sent by Axis Trustee Services says “An application bearing CA (CAA) No1492/KB/2020, proposing a scheme of arrangement with its creditors (Scheme) is filed by SEFL in the NCLT, Kolkata bench. The NCLT Kolkata has passed an order on 30 December 2020 on the said application, a copy whereof along with the copy of the proposed scheme of arrangement has been received by us and is also enclosed through the link of Bombay Stock Exchange
The mail then shares that “NCLT Kolkata vide the order has inter alia directed convening of meeting of debenture trustees and individual debenture holders themselves (only in the absence of a representative debenture trustee) for the purpose of their considering, and if thought fit, approving, with or without modification, the said scheme. As the NCLT Order we are required to maintain status quo on the contractual terms and are further estopped from any form of reporting and taking any coercive action which would prejudicially affect SEFL and/or sanction and/or implementation of the Scheme”.