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Visa Steel likely to be admitted in NCLT next week - Report

Steel News - Published on Fri, 16 Mar 2018

Image Source: Financial Express
Financial Express, citing sources with direct knowledge of the development, reported that the hearing for Visa Steel at the Kolkata bench of the National Company Law Tribunal (NCLT) is likely to be scheduled on March 19. The report quoted the source as saying that “The loss-making Visa Steel is expected to be admitted for corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016, on Monday since banks are unlikely to accept the out-of-court settlement plan submitted by the company.”

In a stock exchange notification on January 5, Visa Steel had said, “We understand that an application has been filed by State Bank of India with hon’ble NCLT Kolkata bench to initiate CIRP for the company under IBC 2016. The company is in discussion with SBI for settlement.”

Visa Steel is one of the 28 companies in the Reserve Bank of India’s (RBI) second list of corporate defaulters that were referred to the NCLT after December 31, 2017.

According to details on the firm’s website, Visa Steel produces special steel, it posted a net loss of INR 119.48 crore in FY17 on revenues of INR 1,544.36 crore, according to Bloomberg data. The total debt of the company stood at INR 3,884 crore during the fiscal. Information in the firm’s annual report for 2016-17 showed that apart from SBI, the other lenders to Visa Steel included Bank of Baroda, Bank of India, Punjab National Bank and Canara Bank.

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Posted By : Sanju Moirangthem on Fri, 16 Mar 2018
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