State Bank of India (SBI) has decided to sell ₹15,431.44 crore exposure of debt-laden Essar Steel to financial institutions, including asset reconstruction companies.
According to the auction notice, the reserve price fixed for the asset sale is ₹9,587.64 crore, which is at 38% discount.
“The resolution plan has been approved and filed in NCLT, Ahmedabad. As per the approved resolution plan of [ArcelorMittal India Private Limited], minimum recovery to SBI is ₹11,313.42 cr. Reserve price of ₹9,587.64 cr. is on the basis of NPV of minimum recovery discounted @18% with a time factor of 1 year,” the auction notice of SBI read.
E-auction
The sale of the NPA account is to happen through e-auction on January 30.
“The interested ARCs/ Banks/ NBFCs/ FIs can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a non-disclosure agreement [NDA] with the bank,” the notice further said.
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) will pronounce its order before January 31 on the maintainability of the petition filed by the Essar promoters to settle dues.
Banks are however getting impatient over the deadlock as they are looking to recover as much they can from the bad loans, as they finalise their books for the financial year.
