Unable to find any resolution to the 28 stressed accounts from the second list, lenders will be initiating insolvency proceedings against 22-23 of these borrowers which include Uttam Galva Steel, IVRCL, Ruchi Soya Industries and Essar Projects, a banker said.
RBI deadline
The Reserve Bank of India deadline to resolve these 28 accounts ended on Wednesday. The regulator, in August, had asked bankers to refer these cases to the National Company Law Tribunal (NCLT) if they failed to find a resolution by December 31. These accounts together have an exposure of ₹1.4 lakh crore.
“Except for Anrak Aluminium, Jayaswal Neco Industries, Soma Enterprises and Jaiprakash Associates, all other accounts are going to the NCLT (for resolution),” a senior banker said.
Banks have decided to refer Asian Color Coated Ispat, Castex Technologies, Coastal Projects, East Coast Energy, IVRCL, Orchid Pharma, SEL Manufacturing, Uttam Galva Metallic, Uttam Galva Steel, Visa Steel, Essar Projects, Jai Balaji Industries, Monnet Power, Nagarjuna Oil Refinery, Ruchi Soya Industries and Wind World India, to NCLT for insolvency proceedings.
Lenders have already decided on a restructuring plan for Jayawal Neco Industries and Soma Enterprise. In the case of Anrak Aluminium, banks are looking for a one-time settlement.
