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Visa Steel is in discussion with SBI for settlement outside NCLT proceedings


Economic Times reported that Visa Steel which was taken to the National Company Law Tribunal (NCLT) on January 5 by lead lender State Bank of India for defaulting on I R 3,600 crore of loans, is pursuing a resettlement plan with its bankers. The proposal includes selling its loans to asset reconstruction companies. The report quoted a source as saying that "While SBI has filed an application against Visa Steel at NCLT, the case is yet to be admitted, a process that is likely to take 1-to-2 months. Visa Steel is keen to utilise the time window and is trying to go for a resolution outside the court.”

In a statement to the BSE last Friday, informing the exchanges about the application filed by SBI with NCLT's Kolkata bench to initiate corporate insolvency and bankruptcy proceedings against the company, Visa Steel said: "The company is in discussion with SBI for settlement."

Visa Steel, which produces special steels and ferro alloys at Kalinganagar, Odisha, saw its loss widening to INR 87.61 crore in the April-September 2017 period, compared with INR 75.43 crore a year earlier.

Source : Economic Times