Monnet Ispat was one of the 12 defaulting companies prioritised by the RBI for proceedings under the Insolvency and Bankruptcy Code (IBC). Lender SBI confirmed the default amount is Rs1,539 crore, then NCLT admitted the proceedings against Monnet Ispat, reports Business Line.
Take the case seriously as the claim amount of Rs2,243 crore mismatch Rs 1,539 crore the default amount of Monnet Ispat, NCLT told SBI. Council of SBI then clarified that the default amount stood at Rs1,539 crore and the balance amount of Rs704 crore not yet declared as a non-performing asset.
After the confirmation of default amount, Monnet Ispat had no objections to the insolvency proceedings. As per the reports from BusinessLine, Monnet Ispat reported last week that the company marking its 12 consecutive quarterly loss for the June quarter of 2017 with the amount of Rs400 crore due to low sales and high-interest cost.
Net sales fell 17.7 per cent to a Rs.346 crore. As of March 2017, the company had a total debt of Rs.6,567 crore, Companys counsel said.
JSW Steel initial offer had been rejected by the lenders, as per the source of Business Line, JSW Steel is waiting for the progress of the case in the National Company Law Tribunal (NCLT) and would file a revised offer based on the seriousness shown by the banks.