BHUSHAN POWER FOLLOWS PARENT TO NCLT AS PNB ACTS TOUGH

MUMBAI: Bhushan Power & Steel on Friday became the sixth amongst the 12 largest indebted companies named by the RBI to face liquidation proceedings, as lenders led by PNB decided to refer it to the NCLT.

The proceedings will be carried out against the firm under the Insolvency and Bankruptcy Code (IBC). Its parent company, Bhushan Steel, was referred to the tribunal for liquidation yesterday by the lenders led by SBI.

The Delhi-based Bhushan Power & Steel, which owes ₹37,248 crore to a consortium of lenders led by Punjab National Bank, is the sixth out of the 12 large stressed accounts identified by RBI for referral to the National Company Law Tribunal (NCLT).

“Banks at a meeting today decided to refer the case to NCLT for recovery,” said a banker.

While Bhushan Steel is in default of ₹44,478 crore to banks, Essar Steel owes ₹37,284 crore and Electrosteel Steels ₹10,273.6 crore.

On Saturday, Lanco Infratech, in default of ₹44,364.6 crore, said the RBI had directed its lead banker IDBI Bank to initiate insolvency procedure.

The internal advisory committee of the RBI after its meeting on June 13 had recommended 12 accounts constituting about 25% of the gross NPAs of the banking system for immediate reference under IBC.