Emergency funding: Lenders to Era Infra likely to meet later this week

Lenders to Era Infra Engineering are expected to meet later this week to discuss interim financing to help keep the company a going-concern and to fund litigation costs for arbitration claims filed against customers.

A senior banker aware of the developments said: “Bankers will meet to discuss the way forward. So far, the RP kept the company going based on funds from internal accruals. However, the company will soon need additional funds. Funds are also required for litigation costs for ongoing arbitration claims against customers such as National Highway Authority of India (NHAI), etc.”

Era Infra Engineering, the flagship company of the Era Group, is part of the first stressed assets’ list flagged by the Reserve Bank of India to be referred to the National Company Law Tribunal. Era Infra was referred to the NCLT by Union Bank of India under Section 7 of the Insolvency & Bankruptcy Code, 2016 and later admitted under the Corporate Insolvency Resolution Process on May 8, 2018.