Bankers have requested Reserve Bank of India (RBI) to extend the resolution period of five companies having a cumulative debt of over Rs 45,000 crore beyond December 13 as the current promoters are willing to monetise the assets or bring money on the table.
Banks hope to attempt a revival plan of these firms outside the National Company Law Tribunal (NCLT).
The companies include Videocon Industries, Soma Enterprises and Amtek Auto. Among the five companies, Amtek Auto is already admitted to NCLT and banks have requested time beyond 270 days.
Once these five firms move out of NCLT, remaining companies will carry a total debt of about Rs 1.05 lakh crore.
The stressed accounts in the second list, shortlisted by RBI in August this year, were to be resolved by December 13.
A senior banker said, "For these cases, the resolution process is well underway and we don't see why it should go to the NCLT as the current promoters are willing to monetise the assets or bring money on the table, giving us comfort to restructure them. Interest waivers are also minimal, which will help banks to recoup their money."
Anrak Aluminium and Jayaswal Neco Industries (JNIL), which were in the second list of 27 cases shortlisted by the Reserve Bank of India (RBI), are already resolved. About Rs 1 lakh crore of stressed assets from the second list of RBI may have to go to the NCLT as the deadline for resolution outside the courts comes to an end on December 13.
The other cases that are in the second list are Aban Offshore, which has an exposure of Rs 12,000 crore, Punj Lloyd with an exposure of Rs 6,200 crore, Soma Enterprises (Rs 1,600 crore), IVRCL (Rs 3,000 crore) and Shree Renuka Sugars (Rs 6,012 crore). Companies in the power, infrastructure and telecom sectors will continue to dominate the list as banks grapple with solutions to resolve the debt.
In a letter, the central bank said these accounts should first be resolved through any of the RBI's schemes before December 13, failing which cases should be filed against these companies under the Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal (NCLT) before Dec 31. They added that the RBI has allowed banks to make "adequate" provisions for such accounts by March 2018.
The new list, bankers said, includes Videocon Industries (gross debt of Rs 20,000 crore), IVRCL (Rs 3,579 crore), Uttam Galva Steels (Rs 5,041 crore), Soma Ent (Rs 1,895 crore) and Asian Colour Coated Ispat (Rs 3,019 crore).
STRESSED OUT
- The companies include Videocon Industries, Soma Enterprises, Amtek Auto
- The stressed accounts in the second list were to be resolved by December 13
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