Kolkata-based Electrosteel Steels, which produces DI pipes and casting, may not have much difficulty in restructuring its Rs 7,000 crore loan as the consortium of 27 lenders are open to recast it provided some conditions are fulfilled.
The firm produces and supplies ductile iron (DI) pipes and fittings and is three-star export house. It was the first domestic company to set up a ductile iron pipe plant apart from pioneering manufacture of alloy steel castings in the country.
According to CDR norms, the promoters seeking to recast their loans should bring in 25 per cent of the loan amount as fresh capital infusion.
The loan to the company would be restructured under the corporate debt restructuring (CDR) route and the proposal to this effect may go to the CDR cell next month, media reports indicate.
State Bank of India (SBI) is the lead lender to the company and it provided over Rs 1,000 crore loan.
Other lenders include Punjab National Bank around Rs 400 crore, Srei Infra about Rs 440 crore, Indian Overseas Bank has around Rs 350 crore exposure, Oriental Bank of Commerce and UCO Bank have given over Rs 300 crore each to the company.
The group flagship Electrosteel Castings is the holding company of Electrosteel Steels with 39 per cent stake, and bankers want guarantees from this company for the CDR to go through.