New Delhi: After the firm was referred to the Allahabad bench of the National Company Law Tribunal (NCLT) for debt resolution, State Bank of India, the principal bank of Bajaj Hindusthan Sugar, plans to rely on the personal guarantees of the promoters.
The company owes Indian banks Rs 4,771 crore and has previously used two debt restructuring plans, causing lenders to take significant haircuts.
“We are taking steps to invoke the personal guarantees of the promoters in accordance with the Supreme Court’s directions in this regard in May this year,” said a banker, asking not to be quoted.
A spokeswoman for Bajaj Hindusthan declined to comment. SBI made no comments regarding the situation involving a specific account.
As a result of the company’s failure to comply with some terms of the prior debt restructuring plans, the company was referred for debt restructuring at the beginning of this month. According to the SBI petition to the NCLT, the debt was categorised as a non-performing asset with effect from June 2017.
According to SBI’s appeal, the cause of action persisted because the settlement agreement required the corporation to maintain financial discipline, but it did not. Additionally, SBI had a claim because the corporation admitted its responsibility yet failed to pay the bank’s debts every single day, according to the petition.
One of the biggest sugar producers, Bajaj Hindusthan, has 14 mills with a combined capacity of crushing 136,000 tonnes of sugarcane per day.
It can manufacture 800 kilo litres of industrial alcohol per day from its six distilleries.
The company reported Rs 5,569 crore in revenue for FY22 and a loss of Rs 218 crore.
The company previously stated in a stock market statement that the holder of its optionally convertible debentures worth Rs 3,483.25 crore, issued to the Joint Lenders’ Forum (JLF) in accordance with the Scheme for Sustainable Structuring of Stressed Assets (S4A Scheme), has the option to exercise the right.
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