1. From Videocon, IVRCL to Uttam Galva, RBI sends 2nd list of over 30 stressed asset firms to NCLT ward

From Videocon, IVRCL to Uttam Galva, RBI sends 2nd list of over 30 stressed asset firms to NCLT ward

The Reserve Bank of India (RBI) has sent lenders a second list of more than 30 stressed assets that they need to refer to the National Company Law Tribunal (NCLT) by December 31, senior bankers told FE.

By: | Published: August 30, 2017 6:55 AM
RBI, NCLT, National Company Law Tribunal, Reserve Bank of India, Videocon The Reserve Bank of India (RBI) has sent lenders a second list of more than 30 stressed assets that they need to refer to the National Company Law Tribunal (NCLT) by December 31, senior bankers told FE (Image: IE)

The Reserve Bank of India (RBI) has sent lenders a second list of more than 30 stressed assets that they need to refer to the National Company Law Tribunal (NCLT) by December 31, senior bankers told FE. They added that the RBI has allowed banks to make “adequate” provisions for such accounts by March 2018. The new list, bankers said, includes Videocon Industries (gross debt of Rs 47,554 crore), IVRCL (Rs 3,579 crore), Uttam Galva Steels ( Rs 5,041 crore), Soma Enterprises (Rs 1,895 crore) and Asian Colour Coated Ispat (Rs 3,019 crore).  The RBI is understood to have told banks they should try and come up with solutions for the stressed exposures failing which these accounts should be referred to the bankruptcy court by December 31. “We are hopeful some of the larger assets would be resolved before the RBI deadline since lenders are working on specific resolutions,” a senior public sector banker said.

Earlier this month, FE had reported that a new list of firms from whom bankers can recover their dues using the insolvency route was expected soon. In June, the central bank had identified a dozen companies from which banks will try and recover their dues. It had asked banks to refer the 12 large stressed accounts — with dues to banks of close to Rs 2.4 lakh crore — to the NCLT.  The RBI had added that details of the resolution framework in regard to the other non-performing accounts would be released in coming days.

Sources said the Internal Advisory Committee of the central bank will soon intimate to banks the companies that need to be referred to the NCLT. Meanwhile, NCLT benches have admitted eight of the 12 companies identified by the RBI with a combined gross debt of more than Rs 1.3 lakh crore, clearing their insolvency proceedings. The NCLT has cleared insolvency proceedings against 11 of the 12 identified by the central bank.

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