It is close to 600 days and still counting.
The inordinate delay in the bankruptcy courts is making it difficult for banks to sell loans extended to Essar Steel. Most of the 17 banks in the consortium are willing to sell off their exposure, but the bidders who once saw some prospects are shying away from buying it. Bankers say the delays are causing uncertainty over the recovery of money.
Last month two banks, Bank of India and Central Bank of India had put their exposures of Rs 1,978 crore and Rs 423 crore, respectively, on sale, but were not able to conclude a deal.
The resolution process, which started from NCLT Ahmedabad and was heard in the Supreme Court twice, is now with the National Company Law Appellate Tribunal (NCLAT).
The tribunal is still deciding the distribution of the funds. On April 23, NCLAT requested the banks to offer a better deal to the operational creditors. Read More
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