New Delhi: The National Company Law Tribunal on Wednesday allowed banks to initiate insolvency proceedings against Bhushan Steel and another firm, Bhushan Steel and Power. The petition for launching the insolvency process was filed by State Bank of India (SBI), the lead bank of the consortium of lenders, in the case of Bhushan Steel while a similar plea was filed by Punjab National Bank (PNB) against Bhushan Steel and Power. SBI has claimed recovery of Rs4,295 crore from Bhushan Steel and $490 million for foreign currency loan. The NCLT, on 13 July, issued notices to Bhushan Steel as well as Bhushan Steel and Power over insolvency proceedings initiated by their lenders SBI and PNB. Both the petitions were filed under the Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, where the financial creditor initiates insolvency proceedings with a claim.

Source: Mint July 26, 2017 10:52 UTC