Tata Steel BSL logo

TATASTLBSL - Tata Steel BSL News Story

₹20.45 0.5  2.3%

Last Trade - 25/09/20

Sector
Basic Materials
Size
Small Cap
Market Cap £237.3m
Enterprise Value £1.91bn
Revenue £1.76bn
Position in Universe 480th / 3012

UPDATE 1-India bars defaulting company owners from bidding to buy back assets

Thu 23rd November, 2017 1:08pm
* Borrowers with year-old non-performing loans made 
ineligible 
    * Some owners reportedly wanted to bid for assets in 
bankruptcy 
    * India pushing companies to bankruptcy to cut record soured 
loans 
 
 (Adds details on new provisions) 
    MUMBAI/NEW DELHI, Nov 23 (Reuters) - India tightened its 
fledgling bankruptcy and insolvency rules on Thursday, 
potentially barring owners of 12 of the country's biggest loan 
defaulters from bidding to buy back their assets when they are 
auctioned as part of bankruptcy proceedings. 
    The government passed an executive order that aims to 
"keep-out such persons who have wilfully defaulted, are 
associated with non-performing assets, or are habitually 
non-compliant and, therefore, are likely to be a risk to 
successful resolution of insolvency of a company," the corporate 
affairs ministry said in a statement. 
    Under the revised rules, borrowers whose loan accounts are 
classed as non-performing for a year or more will not be 
eligible to bid for the assets in bankruptcy proceedings, the 
ministry said. 
    The revised rules also bar "wilful" defaulters and 
associates of the defaulting borrowers from bidding for the 
assets, according to the statement. http://bit.ly/2A5t1SD 
    In June, India's central bank ordered 12 of the country's 
biggest loan defaulters to be forced into bankruptcy courts as 
it tries to cut the record $147 billion soured loans accumulated 
in the country's banking sector.  urn:newsml:reuters.com:*:nL3N1JA4IS 
    Experts appointed to steer the companies through a possible 
sale or eventual liquidation have sought interest from potential 
suitors to take over the defaulter companies as part of the 
resolution process. 
    Media reports have said that in some cases, the companies' 
erstwhile promoters, or the main shareholders, may be looking to 
bid for the companies again. 
    The Reserve Bank of India has also asked banks to take 
nearly 30 more companies to bankruptcy proceedings if any other 
form of loan resolution does not take place by around 
mid-December. 
    Sajjan Jindal, chairman of the steel-to-cement JSW Group who 
had lobbied against big defaulters who wanted to bid for their 
own insolvent assets, welcomed the move. 
    "This will facilitate healthy competition in maximising 
value to lenders which is in the public interest," Jindal said 
in a post on Twitter. 
    His company JSW Steel Ltd  JSTL.NS , in which Japan's JFE 
Holdings Inc  5411.T  has a stake, is preparing to jointly bid 
with the Japanese company for the assets of insolvent Bhushan 
Steel Ltd  BSSL.NS , sources told Reuters this week. 
 urn:newsml:reuters.com:*:nL3N1NS39C 
    Rajnish Kumar, chairman of top lender State Bank of India 
 SBI.NS , said on Thursday the bank expected considerable 
interest from investors other than the promoters or major 
shareholders for the assets in bankruptcy.  urn:newsml:reuters.com:*:nI8N1LO011 
 
 (Reporting by Devidutta Tripathy and Tommy Wilkes; Writing by 
Malini Menon; Editing by Adrian Croft) 
 ((devidutta.tripathy@thomsonreuters.com; +91 84518 40430; 
Reuters Messaging: 
devidutta.tripathy.thomsonreuters.com@reuters.net)) 
 
Keywords: INDIA BANKRUPTCY/
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.