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Lenders send most firms from second list to NCLT

The RBI has asked banks to refer all firms that have failed to repay their dues on time to the NCLT

Dev Chatterjee & Abhijit Lele  |  Mumbai 

Lenders send most firms from second list to NCLT

moved the National Company Law Tribunal (NCLT) on Wednesday for against more companies.

Compared to an earlier list of 12 large corporate loan defaulters referred by the (RBI) for proceedings under the (IBC), the second list of companies includes smaller power and steel units.

will have to make 50 per cent provisions on loans to these companies’ during the current quarter.


“We have sent most of the companies to the NCLT, barring a few that are close to resolution,” State Bank of India Chairman Rajnish Kumar told Business Standard on Wednesday.  
The has asked to refer all companies that have failed to repay their dues on time to the Wednesday’s list follows the RBI’s first list of 12 companies undergoing insolvency resolution.

Videocon Industries was not taken to the because it was close to resolution of its Rs 21,500-crore debt and because it had sold its Kenstar brand and corporate headquarters to repay loans.

was not taken to the as well. has debts of Rs 30,000 crore and has sold its cement and power units for Rs 31,000 crore.

The Jaypee group’s real estate company, Jaiprakash Infratech, is undergoing and has drawn interest from the JSW, Adani and Vedanta groups during its debt resolution.

Jayaswal Neco Industries was also spared because it is close to repaying its loans. The company’s proposal to convert of part of its debt to equity was recently recommended by the independent evaluation committee formed in accordance with guidelines to the joint lenders’ forum. A total of 376 cases have been admitted by the in 2017, of which four have been resolved and liquidation orders have been issued in 14 others. The rest are pending resolution. In 167 cases, the process was initiated by operational creditors.

Financial creditors have initiated 122 cases, according to a report by Motilal Oswal.

First Published: Thu, December 14 2017. 02:57 IST