Of the over two dozen companies named by the Reserve Bank of India (RBI) in its second list of large non-performing assets (NPAs), only three — Ruchi Soya Industries, EPC Constructions and ARGL — have come close to being resolved successfully through the corporate insolvency resolution process (CIRP) since August 2017, when the list is known to have been sent to banks.
The second list involved companies with a total principal outstanding of Rs 1.28 lakh crore, according to a March 2018 report by CLSA.For these three accounts, their respective committees of creditors (CoCs) have selected successful bidders — Patanjali Ayurved for Ruchi Soya, Royale Partners for EPC Constructions and CarVal-Arcil for ARGL.
While three other accounts from the list have been resolved by bankers, the procedure involved was beyond the purview of the insolvency law. State Bank of India (SBI) withdrew its insolvency petition against Uttam Galva Steels in November 2018 after a settlement that involved a repayment of dues by ArcelorMittal. Most banks have sold their exposure to Jayaswal Neco Industries to Bank of America through Assets Care & Reconstruction Enterprise (Acre).
Exposures to Jai Balaji Industries have been sold to Edelweiss Asset Reconstruction Company (ARC) by at least four banks at a 63 per cent haircut, with a 15 per cent cash component being paid upfront.
Two assets have gone for liquidation. One of them is Coastal Projects, for which the liquidation order was passed in December 2018. The other, Shakti Bhog, is being liquidated under a Delhi High Court order in a different case and, as a result, was not admitted for insolvency. A few others, such as IVRCL and Unity Infraprojects, may also be on their way to liquidation.
A bulk of the assets — 15 in all — have been admitted and are in various stages of the insolvency process. —FE