State Bank of India seeks for investment from Alvarez Marsal with an aim to resolve the defaulter Essar steel issue on Rs 44,000 crore debt.
For other defaulters, AM takes support from EY, Deloitte PWC to manage insolvency proceedings.
The duties are allotted to each firm with an aim to speed up the process. EY will take care of loan resolution process of Amtek Auto while Deloitte will help lender reorganise Bhushan Steel. PWC has the mandate to resolve Electrosteel Steels and BDO India consulting firm will handle Jyoti Structures.
The terms of payment are fixed in between Rs 1.25-1.5 crore which depends on the complexity of the project and the time period for the same is six to nine months.
There is a list of 12 big defaulters from whom RBI wants to recover the remaining dues for now. These 12 defaulters were finalised by National Company Law Tribunal after getting consent from lenders.
It is planned that banks will approach NCLT to initiate this process in which lenders will have to finalise an interim insolvency professional (IRP) acceptable to all creditors. IRP will overview all the operations of the defaulting company after the board is dissolved.