RBSA Advisors named interim resolution professional for Visa Steel

MUMBAI: Lenders to Visa Steel have hired RBSA Advisors as interim resolution professional in their first step towards recovering Rs 3,000-crore dues from the metal maker, said two bankers familiar with the discussion.

“RBSA Advisors was shortlisted among half a dozen companies that were considered by lenders for the role of IRP,” said one of the bank officials quoted above.

RBSA Advisors is an investment banking firm that also provides valuation and advisory services. Visa Steel is one of the 28 companies that fell into the list of companies that RBI identified to be taken to the bankruptcy courts to recover the dues if a resolution was not possible by December 13.


The State Bank of India, which is the lead bank, would initiate insolvency proceedings against Visa Steel.

Lenders had made several attempts earlier to revive Visa Steel which owes Rs 3,000 crore to banks but it did not materialise. In September 2015, lenders had invoked a strategic debt restructuring plan which involved banks converting a part of the debt into equity. Post conversion, lenders had to sell a stake to new investors.

Visa Infrastructure and Visa International are the two key promoter shareholders who jointly own 58 per cent stake in the company while the balance is held by the public as on September 2017.