SBI FILES AN INSOLVENCY PETITION BEFORE THE NCLT AGAINST SUGAR COMPANY BAJAJ HINDUSTHAN

The largest sugar company in the nation, Bajaj Hindusthan Sugar Ltd., has been targeted by state-owned SBI’s insolvency suit. Before the Allahabad bench of the National Company Law Tribunal, SBI has brought the claim as a financial creditor (NCLT). In accordance with Section 7 of the 2016 Insolvency and Bankruptcy Code, a petition has been filed. The business recorded a combined net loss of Rs 267.54 crore and revenue of Rs 5,607 crore in the previous fiscal year. On August 12, the company announced that during the fiscal year’s first quarter, which ended in June, it had a net loss of Rs. 45 crore and a total revenue of Rs. 1,538 crore.

According to RBI criteria on loan classification, the lenders have classified the company’s account as Non-Performing Assets (NPA) for the quarter ending June 22, due to late payments of loan installments and coupon rate interest on optionally convertible debentures. In the notes of accounts of the financial statement for the first quarter, the company stated that the lenders had signed an ICA (Inter Creditors Agreement) on January 28, 2022, for the resolution of the company’s accounts.

In order to streamline operations and raise the value of the company, the company is also investigating or analyzing various options for corporate restructuring.

The top manufacturer of sugar and ethanol in India is Bajaj Hindusthan Sugar Ltd.

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