In yet another twist in the insolvency resolution chapter at Anrak Aluminium, the country’s biggest lender State Bank of IndiaBSE 0.40 % has entered into a compromise deal with the company involving debt revamp and a haircut totalling more than two-thirds of the dues.
As part of the debt recast, lenders agreed to settle for around Rs 1,300 crore, compared to the original claim of more than Rs 4,000 crore. After the settlement was reached, Anrak Aluminium promoters made the initial payment of around Rs 150 crore, three people aware of the development said.
SBI is learnt to have sealed this compromise deal at a joint lenders’ meeting held recently but didn’t update the banking regulator RBI while moving the National Company Law Tribunal (NCLT) at its directive.
Last week, following RBI’s directives of the banking regulator, SBI moved the NCLT’s Hyderabad bench with an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.
Earlier, the tribunal had dismissed a petition filed by Anrak Aluminium, a joint venture between India’s Penna group and UAE’s Ras Al Khaimah Investment Authority (RAKIA), in national interest.
Experts say the fresh insolvency petition filed by SBI was heading to another curious twist where the tribunal may have no other option than dismiss it, taking into view the loan restructuring agreed by the joint lenders.