NEW DELHI: Debt resolution of Bhushan Steel , largest among the steel companies undergoing the process, will be a credit positive for its lenders, Moody's Investor Services said today.Bhushan Steel is one of the 12 large non-performing assets (NPAs) held by Indian banks that lenders last year took to National Company Law Tribunal ( NCLT ) for a resolution under the Insolvency and Bankruptcy Code (IBC). Within the sector, Bhushan Steel is the largest account representing about 40 per cent share.The company owes Rs 44,478 crore to its lenders. Beyond asset quality, the effect on profitability and capital will depend on the haircuts that lenders take in the resolution process. "In this context, the Bhushan Steel transaction is an important milestone, because it is the first and largest of the 12 large non-performing asset in the NCLT resolution process. If the other steel assets are resolved with similar haircuts, many banks can expect a positive effect on profitability and capital," it added.

Source: Economic Times March 09, 2018 11:15 UTC