Some lenders to bankrupt Era Infra Engineering are exploring a resolution plan that will allow them to restructure the company’s assets and claims under arbitration into separate entities that can be monetized systematically, two people directly aware of the ongoing negotiations said.
According to the people cited above, this plan proposes to club all assets of the company into one entity, assign claims under arbitration which Era has filed against its customers such as National Highway Authority of India (NHAI) amounting to ₹20,000 crore to a separate special purpose vehicle (SPV), and use the proceeds from the sale of the assets as well as claims recovery to pay off lenders.
In such a scenario, the banks will also have the option of inducting third parties for funding litigation costs of ongoing arbitration claims. Read More
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