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The 27-bank lenders’ forum is yet to decide on the new promoter-investor for Electrosteel Steels (ESL). According to P Srinivas, MD and CEO, UBI, there is “no great improvement” in the matter.
However, the lenders’ forum has initiated discussions.
There is time till September to identify the promoter-investor, he said.
The lenders, he said, have a six-month time-frame to complete the process, which began in July, so that their exposures to Electrosteel Steels remain a “standard asset”.
Kolkata-based UBI is a part of the 27-bank lenders’ forum, led by the State Bank of India, which has opted for strategic debt restructuring (SDR) of ESL’s outstanding loan account.
Through the SDR, the lenders’ forum has initiated the move to convert a part of its ₹9,600-crore borrowing of ESL into equity and pave the way for management change.
UBI’s exposure in ESL stands at around ₹300 crore. According to media reports, Tata Steel and a Singapore-based firm have offered to take over ESL.
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