Bank of Baroda approaches NCLT over unpaid dues to Gayatri Projects
As per news reports, Bank of Baroda has approached a bankruptcy court for recovery of its dues to Gayatri Projects, promoted by former Rajya Sabha MP T Subbarami Reddy, even as the company is making a desperate plea to lenders to consider a debt-recast proposal.
The company owes little less than ₹6,000 crore to the country’s financial system, with Bank of Baroda exposure being nearly a quarter of the total loans. The Hyderabad bench of the National Company Law Tribunal will hear the lender’s plea on April 12.
“Gayatri Projects has submitted a debt restructuring plan to lenders” and all banks have "deliberated" on it and are expected to "get back in ten days with their queries,” the company said.
However, bank officials said that they have approached NCLT since they are unsure if all lenders will accept the proposed plan. The company has appointed EY to advise it on the debt restructuring proposal.
The Hyderabad-based company’s fund and non-fund based borrowing was at Rs 5,917 crore as of September 2021. The company's market cap stood at Rs 465 crore, and its shares closed at Rs 24.85 apiece on Thursday.
The company has defaulted in payment of dues to lenders. There has been devolvement of significant non-fund-based facilities, and most of the lenders have recalled their financial facilities extended to the company, the borrower said in a stock exchange disclosure on February 14. It further said the outstanding dues, including devolvement of non-fund based facilities and recalled facilities, stood at Rs 794.66 crore as of December 31, 2021. Lenders have decided to recommend Satyendra Khorania as the interim resolution professional if the company is admitted for insolvency proceedings.
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