Lenders have been asked to register against these defaulting borrowers in NCLT within a month
economy news| Lenders on Monday began meeting to initiate proceedings against 12 stressed accounts identified by the Reserve Bank to be referred under the Insolvency and Bankruptcy Code (IBC), sources said.
The accounts identified by the RBI include Amtek Auto (Rs 14,074 crore), Bhushan Steel (Rs 44,478 crore), Essar Steel (Rs 37,284 crore) Bhusan Power and Steel (Rs 37,248 crore), Alok Industries (Rs 22,075 crore), Monnet Ispat (Rs 12,115 crore) and Lanco Infra (Rs 44,364.6 crore).
Lanco Infratech, power and road construction firm, became the first among the “dirty dozen” companies to be booked by IDBI Bank.
“Lanco Infratech (LITL)…vide letter dated June 17, 2017, intimated under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that RBI directed IDBI Bank, the lead bank of LITL to initiate Corporate Insolvency Resolution Process (CIRP) for LITL under the Insolvency and Bankruptcy Code, 2016,” the company said in a filing on Saturday.|Economy policy
The list also named Electrosteel Steels (Rs 10,273.6 crore), Era Infra (Rs 10,065.4 crore), Jypaee Infratech (Rs 9,635 crore), ABG Shipyard (Rs 6,953 crore) and Jyoti Structures (Rs 5,165 crore) as defaulting borrowers.
According to sources in Finance ministry various banks held meeting today to chart out future course of action regarding some of the accounts identified by RBI.
“In today’s meeting, banks met to finalise their action plan for some of the accounts before referring to the National Company Law Tribunal (NCLT),” said a banker.
Bankers met to discuss accounts such as Amtek Auto, Bhushan Steel and Essar Steel, among others, said another banker.
The lenders have been asked to register against these defaulting borrowers in NCLT within a month.