MC:PNB, BOI say recovery from Essar Steel resolution likely in March

14 March 2019: Top lenders involved in Essar Steel debt resolution on March 14 said the final decision and recoveries from the account are likely by the end of the month. 

“Decisions on Essar Steel have been taken decisively. Hope to resolve it by March 31,” said Sunil Mehta, Managing Director and Chief Executive Officer, Punjab National Bank (PNB). He was speaking to reporters on the sidelines of an event in Mumbai. 

According to reports, PNB expects to recover about Rs 2,500 crore from Essar Steel.

A top official of another lender also sounded optimistic on the recovery before the bank closes the books for the current financial year on March 31. 

Dinabandhu Mohapatra, Managing Director & Chief Executive Officer, Bank of India (BOI) said the lender is “quite hopeful” of recovery in Essar Steel. He expects a writeback of more than Rs 1,800 crore from the account. 

“We are expecting big recoveries. Our provision coverage ratio is among the highest in the industry at 76.7 percent and in some cases we have made 100 percent provisions and we are hopeful to write back directly to our profit,” Mohapatra told reporters today. 

NCLAT hearing on March 15 

The National Company Law and Appellate Tribunal (NCLAT), that was scheduled to hear the petition moved by promoters of Essar Steel against National Company Law Tribunal (NCLT) Ahemdabad’s ruling on March 14, has adjourned it for a day. 

The NCLT Ahmedabad had on March 8 approved ArcelorMittal’s bid of Rs 42,000 crore to takeover Essar Steel. It had also suggested the Committee of Creditors (CoC) share 15 percent of the bid amount with operational creditors. 

Mehta said lenders will take a call after studying the order and the call on apportionment of dues will be taken after the lenders’ meet. “We have to see various aspects of the order,” he said.  

Money Control reported

Categories: General News, India Bankruptcy

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