The Joint Lenders’ Forum (JLF) has decided to take up Bajaj Hindusthan’s loan account for consideration under Scheme for Sustainable Structuring of Stressed Assets (S4A).
“We would like to intimate that the Joint Lenders’ Forum of the company at its meeting held on June 23 has taken a decision that the loan account of the company will be taken up for consideration under the S4A Scheme introduced by the RBI. Accordingly, the bankers shall evaluate and formulate the resolution plan as envisaged in the scheme for implementation,” it said in a stock exchange filing. The company, which is part of the Shishir Bajaj group, has a debt of over Rs 6,500 crore.
The company also shelved the proposal for sale of co-generation power business as was initiated earlier primarily for the purpose of utilising the sale proceeds towards repayment/ prepayment of the company’s debts. Shareholders of the company had earlier passed the requisite resolutions for sale of the unit.
The company had announced plans in December to sell its co-generation power business, having 449 MW capacity at 14 locations in Uttar Pradesh, to LPGCL for about Rs 1,800 crore. However, later it cut down the deal size to Rs 1,227 crore. The lenders of the LPGCL had said that the transaction value should be restricted to book value of the co-generation power business of Rs 1,227 crore as on proposed transfer date of March 31, 2017. Bajaj Hindusthan has 14 sugar mills with cane crushing capacity of 1.36 lakh tonnes per day and alcohol distillation capacity of 800 kilo litres per day.