PSL Limited files for insolvency

PSL made losses of Rs 697 crore in 2016-17

The Ashok Punj-owned PSL Limited, the largest manufacturer of pipes in India, has filed for insolvency under the Insolvency and Bankruptcy Code, 2016. It owes Rs 4,000 crore to 24 banks and other institutions, including foreign lenders, according to a person in the know of the matter.

PSL had filed for reference to the Board of Industrial and Financial Restructuring (BIFR) in 2015. Subsequently, the matter was transferred to the National Company Law Tribunal (NCLT). The IBC permits transfer of cases from the BIFR. In this case, the company filed the application under Section 10 of the IBC.

“Leading banks have exposure