Sterling Biotech one-time settlement offer opens doors for more promoters

Bhushan Power & Steel, Essar want banks to take their 100% dues repayment offer

With the lenders clearing the one-time settlement offer of Sterling Biotech under Section 12A of the Insolvency and Bankruptcy Code (IBC) with a 65 per cent haircut, the stage is set for a legal battle by the promoters of other firms who have filed similar applications and want similar treatment to their accounts.

As at the end of December, the lenders settled 63 cases under Section 12A, which allows a defaulter to make good on the default and retain control over the firm even after the case is admitted to the National Company Law Tribunal. According to the IBC norms,