Bhushan Power latest debt-laden firm referred to NCLT as PNB gets tough
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Mumbai: Bhushan Power & Steel on Friday became the sixth amongst the 12 largest indebted companies named by the Reserve Bank of India (RBI) to face liquidation proceedings, as the lenders led by Punjab National Bank (PNB) decided to refer it to National Company Law Tribunal (NCLT).
The proceedings will be carried out against the company under the Insolvency and Bankruptcy Code (IBC). Its parent company, Bhushan Steel, was referred to the tribunal for liquidation on Thursday by the lenders led by SBI.
The Delhi-based Bhushan Power & Steel, which owes Rs37,248 crore to a consortium of lenders led by Punjab National Bank, is the sixth out of the 12 large stressed accounts identified by the RBI earlier this month for referral to the NCLT.
“Banks at a meeting today decided to refer the case to NCLT for recovery,” said a banker.
On Thursday, lenders led by SBI had decided to send Bhushan Steel, Essar Steel and Electrosteel Steels to NCLT to initiate insolvency proceedings. While Bhushan Steel is in default of Rs44,478 crore to banks, Essar Steel owes Rs37,284 crore and Electrosteel Steels Rs10,273.6 crore. Amtek Auto which owes Rs14,074 crore to lenders will also be referred to NCLT soon.
On Saturday, Lanco Infratech, in default of Rs 44,364.6 crore, said the RBI had directed its lead banker IDBI Bank to initiate insolvency procedure. The internal advisory committee (IAC) of the RBI after its meeting on 13 June had recommended 12 accounts constituting about 25% of the gross NPAs of the banking system for immediate reference under IBC.
Other identified accounts include Alok Industries (Rs22,075 crore), Monnet Ispat (Rs12,115 crore), Era Infra (Rs10,065.4 crore), Jypaee Infratech (Rs9,635 crore), ABG Shipyard (Rs6,953 crore) and Jyoti Structures (Rs5,165 crore), according to industry data.