Bajaj Hindusthan Sugar today said in a regulatory filing that the State Bank of India (SBI), the country's largest lender, has initiated insolvency proceedings against the company before the Allahabad bench of the National Company Law Tribunal (NCLT).
Bajaj Hindusthan Sugar, whose promoter happens to be Kushagra Bajaj, owns 14 factories with the total capacity of crushing 136,000 tonnes of sugarcane per day.
"We understand that State Bank of India, financial creditor through its advocate has initiated Corporate Insolvency Resolution Process of Bajaj Hindusthan Sugar Limited before the Hon'ble National Company Law Tribunal, Allahabad Bench under Section 7 of Insolvency and Bankruptcy Code 2016. This disclosure is made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," the company's regulatory filing read.
Earlier, a news report had stated that SBI had approached the NCLT against Bajaj Sugar over non-payment of dues, but the petition is yet to be admitted. As per the news report, the company owes lenders Rs 4,771 crore in debt, and was already part of two debt-restructuring schemes.
For the quarter ended June 2022, Bajaj Sugar had reported a net loss of Rs 44.91 crore as against a net loss of Rs 49.72 crore reported during a year-ago period.
The shares of the company were down 5.05 per cent today at Rs 10.15 on BSE.
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