NCLT allows withdrawal of insolvency petition against Bajaj Hindusthan
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The NCLT has allowed the withdrawal of insolvency petition filed by State Bank of India (SBI) against Bajaj Hindusthan Sugar. The counsel of SBI in its latest application to the Allahabad bench of the NCLT said that Bajaj Hindusthan sugar, during the pendency of insolvency application deposited with SBI overdue amount towards term loan and OCD coupons, and has also assured to pay the future overdue(s) / Installment(s) with interest thereon, as and when, the same becomes due and payable.
Following this submission, the NCLT ordered the withdrawal of the insolvency plea against the company by SBI.
Reacting to the NCLT decision Bajaj Group Spokesperson Neeraj Jha said: “It was a difficult period for the company when so much was at stake, none more than our reputation. We’re relieved as well as grateful. We take the opportunity to thank the lenders and each stakeholder for believing in us and how we conduct our business”.
He further said that Bajaj Hindusthan is mindful of the legacy of trust, transparency and fair play.
“We truly value our relationships with our stakeholders, especially lenders. We have a track record of honouring our commitment to them for close to 100 years now,” said Jha.
This development will allow us, says the spokesperson, to focus fully on this business which we are convinced has an exciting future.
“We hope this will be a win-win for all our stakeholders which includes our lenders, governments & their agencies, our employees, shareholders & investors, and, most importantly, lakhs of sugarcane farmers who we see as an extended part of our family and who’ve stood by us through thick and thin.”
State Bank of India (SBI) had filed an insolvency petition against Bajaj Hindusthan Sugar Ltd in the National Company Law Tribunal (NCLT) in Allahabad, India. This came after lenders classified their loans to BHSL as non-performing assets (NPAs) in the June 2022 quarter due to delayed payments of loan installments and interest on optionally convertible debentures.
In a regulatory filing, BHSL had disclosed that it could only pay ₹26 crore of the ₹108.60 crore principal installment due on June 30, 2022, leaving ₹82.60 crore outstanding. A consortium of 12 banks has a total exposure of ₹4,762.59 crore to Bajaj Hindustan Sugar Ltd as of July 30, 2022. The banks with the largest exposure to the company are SBI (₹1,192.48 crore), Punjab National Bank (₹1,081.58 crore), and Indian Bank (₹507.46 crore).
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