Mumbai: The Reserve Bank of India (RBI) on Tuesday said 12 accounts representing about 25% of the gross bad loans in the banking system would be eligible for immediate reference for bankruptcy proceedings . It used one criteria for shortlisting these accounts: they should have outstanding dues of at least Rs5,000 crore, of which at least 60% should have been classified as non-performing by banks as of 31 March 2016.

RBI did not name these 12 accounts. Mint has put together a list of likely candidates on which the Insolvency and Bankruptcy Code can be implemented, based on debt size and conversations with bankers. This list will be updated as and when more information comes in.

Bhushan Steel Ltd

Lead Bank: Punjab National Bank

Debt: Rs42,355.53 crore (as on 31 March 2017); Rs38,529.26 crore (as on 31 March 2016)

Interest Coverage Ratio: 0.25 (Fiscal 2017)

Many banks classified this account as a non-performing asset after RBI’s asset quality review in the fourth quarter of FY16. This was done after efforts at resolution, such as joint lender forum (JLF) discussions and a 5/25 refinancing plan, failed. The JLF was set up after the Central Bureau of Investigation (CBI) arrested Neeraj Singhal, vice-chairman of Bhushan Steel, in a cash-for-loans case in 2014. Until recently, lenders were considering restructuring the company’s debt under the RBI’s Scheme for Sustainable Structuring of Stressed Assets, or S4A, which allowed lenders to split the debt into sustainable and unsustainable parts. A company spokesperson declined to comment, saying that it is too early to respond.

Bhushan Power and Steel Ltd

Lead Bank: Punjab National Bank

Debt: N.A. (as on 31 March 2017); Rs35, 684 crore (as on 31 March 2016)

Interest Coverage Ratio: N.A. (fiscal 2017)

Just like many other power sector firms, Bhushan Power and Steel has struggled to service its debt. Chairman and managing director Sanjay Singal had sought a deep restructuring of loans but there was no head way. According to 7 June 2017 report of the Economic Times, the Serious Fraud Investigation Office had initiated investigation into the company. Singal did not comment on whether Bhushan Power would be one of the first companies to go for bankruptcy proceedings after RBI was granted powers under the new ordinance.

Essar Steel Ltd

Lead Bank: State Bank of India

Debt: N.A (as on 31 March 2017); Rs31,211 (as on 31 March 2016)

Interest Coverage Ratio: N.A (Fiscal 2017)

Essar Steel was declared as a non-performing asset in 2015 and lenders have been making efforts to restructure debt. In October 2016, Essar group sold its oil and Vadinar port assets to a consortium led by Rosneft OAO for Rs86,000 crore. The deal will help the group reduce its total debt in half and restructure the debt of Essar Steel, Prashant Ruia, a director at Essar group had said then. An Essar spokesperson did not immediately comment on Tuesday night. This copy will be updated with Essar’s response as and when we get it.

Alok Industries Ltd

Lead Bank: State Bank of India

Debt: Rs23,443 crore (as on 31 March 2017); Rs19,887 crore (as on 31 March 2016)

Interest Coverage Ratio: -0.59 (Fiscal 2017)

Alok Industries was one of the earliest cases which was admitted for restructuring under the CDR scheme. Later the lenders considered restructuring the company under RBI’s new schemes, which failed to be implemented and the account was classified as an NPA. In October 2016, the board of directors gave the approval to the company to approach the Board of Industrial and Financial Reconstruction (BIFR) following an erosion in its net worth by more than 50% from peak levels. This was followed by SIDBI filing a winding up petition in the Bombay high court. A spokesperson declined comment.

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