SBI: Action started against Bajaj Hindustan Sugar, petition filed for bankruptcy before NCLT.
State Bank of India (SBI), the largest public sector bank, has filed a bankruptcy petition in the National Company Law Tribunal (NCLT) against sugar maker Bajaj Hindustan Sugar Limited. With this move of SBI, the troubles of the debt-ridden company Bajaj Group may increase further. Let us inform that this information has been given by SBI in the regulatory filing on Tuesday, the last trading day.
According to a PTI report, SBI as a financial lender under Insolvency and Bankruptcy (IBC) has filed this petition before the Allahabad Bench of the NCLT to declare the company insolvent. This petition has been filed under Section 7 of the Insolvency and Bankruptcy Code 2016.
Let us tell you that the sugar producer company Bajaj Hindustan Shug has outstanding debts of many banks, of which the highest amount is from State Bank of India. Apart from SBI, the company also has liabilities of banks like Punjab National Bank, Indian Bank and Central Bank of India. According to reports, Bajaj Hindustan Sugar Limited owes banks about Rs 4,800 crore.
The company gave information to the stock exchanges
Bajaj Hindustan Sugar Limited has told in the information sent to the stock exchanges that SBI, through its lawyer, has petitioned to initiate the process of declaring the company insolvent. Let us tell you that the headquarters of Bajaj Hindustan Sugar Limited is located in Mumbai while all its 14 sugar mills are present in different districts of Uttar Pradesh.
The total crushing capacity of the company’s sugar mills is 136,000 tonnes per day. Apart from this, the company also has six distilleries with an industrial alcohol production capacity of 800 liters per day. The company also generates about 430 MW of electricity in its sugar mills.
Company is facing losses for a long time
Bajaj Hindustan Sugar Limited is facing losses for a long time. In the last financial year, the company did a business of around Rs 5,607 crore while it had a consolidated net loss of Rs 267.54 crore. In the results released by the company on August 12 for the first quarter of the current financial year, the company has announced that it reported a total income of Rs 1,538 crore for the quarter ended June and a net loss of Rs 45 crore during this period.
