Kolkata-based loss-making Visa Steel has said that the lenders of the company in its Joint Lenders Forum (JLF) meeting held on September 22 have decided to invoke Strategic Debt Restructuring (SDR). This is a tool introduced by the Reserve Bank of India (RBI) that give lenders the right to convert their outstanding loans into majority equity stake if the borrower fails to meet conditions stipulated under the restructuring package.
In a regulatory filing, VIsa also said it is in discussion with lenders for a conversion package to enable inviting a strategic investor in its special steel business. Visa operates a half million tonne integrated special steel plant, 180,000 tonne ferro chrome unit and a 75 MW captive power plant in Odisha. Visa is also progressing towards establishing a steel plant in Chhattisgarh and plans to set up a steel unit and manganese alloy plant in MP.