Loan recast delay hits Essar Steel

Essar Steel's loan-restructuring proposal was pending with the Indian banks for the last 18 months and despite over 26 meetings at the joint lenders forum (JLF), no decision was taken on the proposal, leading to Essar Steel's entry into the list of 12 accounts recommended by the Reserve Bank of India for further action under the Insolvency and Bankruptcy Code (IBC). 
 

Essar Steel's proposal was to bring in fresh equity of Rs2,500 crore into the company from the promoters and private equity firm Farallon. The plan also included banks converting part of their debt into equity. After implementation of the