Bankers of the beleaguered Jayaswal Neco Industries have approved a debt resolution plan submitted by the Nagpur-based company, and they are unlikely to refer the company to the National Company Law Tribunal (NCLT), sources with direct knowledge of the development said. “All the lenders have accepted the plan submitted by Jayaswal Neco. It is unlikely that the company will be referred to the NCLT,” a senior banker with a large public-sector said on condition of anonymity. Jayaswal Neco Industries, a manufacturer of iron and steel and ferrous and non-ferrous casting products, was mentioned in the second list of 28 corporate defaulters that the Reserve Bank of India (RBI) had sent to the banks in August. Till the time of going to press, FE was not able to ascertain if the deal was finally signed between Jayaswal Neco and its lenders. When contacted, a banker said that the joint lenders’ forum (JLF) was still discussing the contours of the deal. The company too wasn’t able to provide a definite answer. “We have submitted a resolution plan to the bankers and they have received it,” said Randhir Javery, General Manager (Corporate), Jayaswal Neco Industries.
The total debt of Jayaswal Neco Industries stood at Rs 3,853 crore as on March 31, 2017, data from Bloomberg showed. The company reported a net loss of Rs 459 crore on revenues of Rs 2,516 crore in FY2017, according to Bloomberg data. The company has an iron and steel plant in Raipur and casting plants in Nagpur, Bhilai and Anjora, data from its 2015-16 annual report showed.
Public-sector lenders such as the State Bank of India, Union Bank of India, Punjab National Bank, IDBI Bank, Andhra Bank and UCO Bank are among the prominent lenders to Jayaswal Neco.
The central bank had given lenders time till December 13 to resolve the 28 accounts mentioned in the second list outside the NCLT. If they fail to come up with viable resolutions by December 13, the accounts will have to be referred to the NCLT by the end of the month. Apart from Jayaswal Neco, the second list includes companies like Videocon Industries, Jaypee Associates, IVRCL, Ruchi Soya to name a few.
Shares of Jayaswal Neco closed at `8.57 on the BSE on Wednesday, down 3.6% from the previous close.