Lenders realise Rs 44,500 cr from resolution of insolvent steel firms: Icra

Of the 11 steel making entities named in the Reserve Bank of India’s list of large corporate defaulters, four have completed their corporate insolvency resolution process (CIRP), with the lenders realising claims to the tune of Rs 44, 500 crore with an average haircut of 47 per cent. Rating agency Icra says that with Essar Steel and Bhushan Power and Steel attracting interest from domestic and foreign investors, the financial creditors could realise at least Rs 60,000 crore more as the resolution process of these entities is completed.

Company	Claims of	Claims realised	Haircut	Progress in the insolvency proceedings	Capacity
	financial	by financial	(%)		(mn tonne
	creditors (Rs cr)	creditors (Rs cr)			per annum)
Bhushan Steel	56,000	35,600	36	Acquired by Tata Steel	5.7
Electro Steel	13,200	2,900	78	Acquired by Vedanta	1.5
Monnet Ispat & Energy	11,000	2,400	78	Acquired by a consortium of JSW Steel and Aion Investment	1.5
Uttam Galva	3,600	3,600	NA	Company withdrew from the insolvency process after paying its
Metallics				outstanding dues	0.6
Essar Steel	49,200	NA	NA	Resolution plan submitted for the company has been approved
				by the committee of creditors; awaiting NCLT approval	10
Bhushan Power & Steel	47,300	NA	NA	JSW Steel has received letter of intent from committee of creditors	3
Visa Steel	NA	NA	NA	Under litigation; Court stay order in place	0.5
Jayaswal Neco	NA	NA	NA	Under litigation; Court stay order in place	1