PEs build $4-billion war chest for bad assets

Private equity entities keenly watch NCLT proceedings

Last week, different Benches of the National Company Law Tribunal (NCLT) admitted bankruptcy proceedings against Electrosteel Steels, Alok Industries and Monnet Ispat & Energy. These were all under the Insolvency and Bankruptcy Code (IBC) that took effect last year.

With one more admitted earlier, of Jyoti Structures, four of the 12 stressed accounts the Reserve Bank of India (RBI) asked lenders to refer for bankruptcy have been admitted by the NCLT. Cases for five others of the original 12, which collectively owe Rs 1.78 lakh crore to banks, are being heard at the tribunal.

This has given new hope to