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Insolvency resolution: Another defaulters' list sent to NCLT

Includes Videocon, Jaypee and Jayaswal Neco, after RBI refuses to relax its earlier directive

Dev Chatterjee  |  Mumbai 

Vedanta may top race for stressed assets

on Friday sent all from the Reserve Bank of India’s second list of on large-size corporate loans to the (NCLT) for

This was after refused to a proposal from the to relax the rules in this regard for those which are close to a resolution.

Industries, Jaiprakash Associates and Jayaswal Neco Industries are now among those to face proceedings for resolution of their loans. These three were recommended by for resolution outside the process but RBI, as mentioned, negatived this.

Under the Insolvency and Bankruptcy Code, a defaulting company’s board of directors are suspended and appoints an professional to manage its day to day affairs. The company will then be sold to the highest bidder who takes over the largest portion of the debt. are also expected to write off a substantial portion, up to 70 to 80 per cent, on the dues.

In its annual report for 2017, said it owed Rs 20,905 crore to Jaypee’s debt was Rs 25,586 crore and that of Nagpur-based Rs 4,188 crore.

Apart from Industries, its telecom arm, Telecommunications, with debt of Rs 3,000 crore, will also be sent to the will have to make 50 per cent provisioning for these loans on their balance sheet.

The group’s realty arm, Jaiprakash Infratech, is already before the NCLT; its equity has received interest from the JSW group, Adani and Vedanta during the resolution process.

The dictat to send all on its list to comes as Reliance Communications announced sale of its wireless assets to Reliance Jio, effective the March 2018 quarter, for Rs 20,000 to Rs 24,000 crore. Lenders said will be considered a non-performing asset in the December quarter and they will make provision for its Rs 44,700-crore loan, by the rules.

On June 2 this year, signed a ‘standstill agreement’ with its lender, under which it would not be paying dues till December 2018. The had come out with its first circular on sending to on June 13.


First Published: Sat, December 30 2017. 01:04 IST