Bhushan Steel ends 20 per cent higher on nod to Rs 30,000 crore restructuring plan

NEW DELHI: Bhushan Steel hit its upper circuit limit of 20 per cent at Rs 66 in trade today after the company said it has received shareholders’ nod to restructure around Rs 30,000 crore loans under a scheme of Reserve Bank of India.

The company has been reporting losses for at least five quarters to Q4FY15. Net loss for the March quarter stood at Rs 360 crore, thanks to incremental increase in interest outgo which stood whopping at Rs 796 crore for the quarter.

A consortium of bankers including Punjab National Bank, State Bank of India, Dena Bank and Bank of India has a total exposure of around Rs 30,000 crore in the company.

In a filing to BSE, the company said, "The Joint Lenders Forum have agreed to extend the Loans of BSL for a tenure of 25 years under the scheme announced by RBI and the approval of the scheme is under process with the respective banks."

"Presently, about 70 per cent of banks have approved the scheme and sanction from rest of the Banks is under process which is expected within a month or so," the company added.


The company has a four-year moratorium on principal repayment. After this, there will be a 21-year repayment period for the company, with a provision to refinance every five years, ET Now reported.

The scrip has fallen 25 per cent so far this calendar while it seen over 80 per cent erosion in its market capitalisation in the past one year.

Neeraj Singhal, CMD at bhushan Steel was arrested by the CBI last year in an alleged cash-for-loan scam involving the then Syndicate Bank CMD SK Jain.