Bajaj Hindustan Sugar plunges 12% after Sbi files insolvency petition in Nclt


By CNBCTV18.com IST (Released)

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Bajaj Hindusthan said in a regulatory filing that the company was exploring and evaluating options for restructuring the business to streamline the business and improve business value.

Shares of Bajaj Hindustan Sugar plunged more than 12% daily after the State Bank of India (SBI) filed an insolvency petition with the National Company Law Tribunal (NCLT) against the company.

As of 11:58 a.m., shares of Bajaj Hindustan Sugar were trading at Rs 8.8, down 12.51 from the previous close on BSE.

The company said in a regulatory filing that financial creditor SBI had initiated a process to resolve the company’s insolvency. SBI filed the petition with the Allahabad Bench of the NCLT.

The petition was filed under Section 7 of the Insolvency and Bankruptcy Code 2016, as reported by the PTI news agency. The article is invoked when a corporate debtor defaults.

On August 12, the company released its financial results for the April-June quarter. It reported a net loss of Rs 45 crore and operating revenue stood at Rs 1,538 crore.

“During the June quarter, due to the late payment of loan installments and interest on the coupon rate on potentially convertible debentures, the lenders classified the company’s account as a non-performing asset (NPA) in accordance with RBI loan classification regulations,” Bajaj Hindustan said. .

However, the company said that given the state of outstanding cane duties and funds for debt service, it is discussing a debt resolution plan with lenders. “It will be a lasting solution to improve liquidity,” Bajaj Hindustan said.

The resolution plan provides for a reduction in its overall debt, a realignment of its capital structure, the payment of farmers’ cane rights, an increase in the availability and supply of cane, etc.

“The company is also exploring/evaluating options for restructuring the business to streamline the business and enhance the value of the business,” Bajaj Hindusthan said in the regulatory filing.

Bajaj Hindusthan Sugar is India’s leading sugar and ethanol manufacturer. It is one of the largest producers of ethanol and produces 38 million liters per year. The company has increased its ethanol production capacity to around 218 million liters per year.

(With PTI entries)


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