State Bank of Hyderabad (SBH) — lender to Abhijeet MADC Nagpur Energy Private Limited (AMNEPL) — has sold loans worth ‘110 crore to Alchemist Asset Reconstruction Company, people familiar with the development told FE.
Total borrowings of Abhijeet MADC stood at `1,370 crore.
In FY14, the company reported a net loss of `202.1 crore on the back of `275.3 crore in revenues. However, its finance costs fell 9% to 130 crore in FY14. Other banks who have put the asset on sale include State Bank of Travancore (SBT), and State Bank of Mysore (SBM). In October last year, Axis Bank had also sold its `1,000 crore loans.
AMNEPL is a special purpose vehicle promoted by Abhijeet Power, Abhijeet Infrastructure and Maharashtra Airport Development Company. The company had developed a 271 MW power plant in Nagpur for which it borrowed more than `1,300 crore from banks.
According to the master restructuring agreement signed between the lenders and the company in 2013, it “requested the existing rupee lenders to restructure the existing rupee loans” citing pending execution of the fuel supply agreement and the delay in availability of coal.
The Manoj Jayaswal-led Abhijeet Group is allegedly among the biggest beneficiaries of the controversial coal block allotments, as part of which the company got blocks in Jharkhand and Chhattisgarh. The group has been struggling to generate enough cashflow and repay its dues, bankers told FE. Based in Nagpur, the group is a diversified business entity with a presence in the core sector areas of power, roads, mining, EPC, ferroalloys, steel and cement.
In 2013, the group had sought a recast of dues under the corporate debt restructuring (CDR) scheme for its companies, Corporate Ispat and Corporate Power. However, these were put on hold after the company failed to rope in a new investor by December 2013.
Meanwhile, lenders were able to sell bad loans worth `7,000 crore in the first half of FY16, while the total offering was `48,000 crore. They could sell NPAs worth `20,000 crore to asset reconstruction companies (ARCs) in FY15 out of more than `90,000 crore of assets put on sale. In FY14, banks had offered assets worth `40,000 crore and ARCs bought loans amounting to `22,000 crore.