The infrastructure term lender Industrial Finance Corporation of India (IFCI) has recovered Rs 280.30 crore from debt-ridden Bhushan Steel (BSL), which has been acquired by Tata Steel under the insolvency process.
“IFCI as one of the financial creditors to BSL had filed its claim with the resolution professional which was duly accepted. Under the resolution plan (RP) envisaging payment of Rs 35,200 crore to all the financial creditors, IFCI has since received its share of Rs 280.30 crore,” the country’s oldest public sector financial institution stated in a BSE filing.
Further, as part of the insolvency process initiated, the company has also been allotted 5,79,277 fully paid up equity shares of Bhushan Steel having a face value of Rs 2 per share
Worth mentioning is, in June last year, Reserve Bank of India’s (RBI) internal advisory committee (IAC) identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks.
Tata Steel had won the bid to acquire debt-laden Bhushan Steel in an insolvency auction. Due to higher provisioning for bad loans and write off, the State-run lender’s standalone net loss widened to Rs 566.64 crore in the last quarter ended March 2018,
There was a write-off and provisions for bad assets to the tune of Rs 1,111.18 crore during the March quarter, more than double from Rs 499.63 crore in the year-ago period.
Shares of IFCI are reported to have surged 10 per cent intraday today as the news of company receiving Rs 280 crore from Bhushan Steel resolution trickled in.