IVRCL

RBI had mandated that the debt resolved outside the ambit of the insolvency and bankruptcy code (IBC)
be rated as investment grade by two external credit rating agencies.Among these cases, rating agencies
have downgraded IVRCL to default status due to weak financial performance and inability to service
debt

Creditors of Hyderabad-based road developer IVRCL Ltd are pushing for a strategic debt restructuring
(SDR) that may involve taking over the firm’s management, as a recast of the Rs.7,000 crore it owes
appears at the risk of failure, according to three people familiar with the development.

ccording to reports, IVRCL has a total debt of little over Rs 10,000 crore. However, the company
in its recent filing has maintained that it has a total debt obligation at Rs 5,556 crore besides the
accumulated losses of close to Rs 3,000 crore on its books.

The rise in debt could be due to invocation of bank guarantees

UTTAM GALVA STEEL

While the promoter group has also submitted its own restructuring proposal, Miglani said banks
were still vetting the proposals on how to bolster the financials of the company carrying debt of
about Rs 8,000 crore.

REMEDY

Debt-laden steel company Uttam Galva Steel has four suitors including Edelweiss ARC and
AION Capital,
ET was the first to report in January that AION is in talks with the troubled steelmaker and its
lenders to work out a restructuring package which would also entail fresh capital infusion of Rs
500-1,000 crore.

CASTEX

Castex Technologies, a subsidiary of automotive component maker Amtek Auto with debt of
over Rs 6,000 crore, has been admitted to bankruptcy court.

IDBI Bank Ltd and State Bank of India (SBI) are the leaders of the consortium. IDBI Bank
sanctioned Rs.450 crore and disbursed Rs.262 crore. SBI sanctioned and disbursed Rs.350 crore.
Others include State Bank of Bikaner and Jaipur (Rs.220 crore sanctioned and Rs.150 crore
disbursed, respectively), Canara Bank (Rs.300 crore, fully disbursed), IFCI Ltd (Rs.350 crore),
Life Insurance Corp. of India (Rs.300 crore), State Bank of Mysore, State Bank of Patiala and
Bank of Baroda (Rs.200 crore each), Oriental Bank of Commerce, Allahabad Bank and ICICI
Bank Ltd (Rs.150 crore each).
Additionally, Amtek had sold bonds worth Rs.1,930 crore. The Rs.800 crore default is part of
this.

IDBI Bank, Canara Bank, Punjab National Bank, Bank of Baroda and a few others have
exposure to Amtek to the tune of $350 million worth of foreign currency loans, with IDBI Bank
having the maximum exposure, $185 million.

REMEDY

SBI had attempted to revive the company by putting in place a corrective action plan in March
2016. As per the restructuring package, a joint lenders forum provided Rs 1,667.5 crore for
capital expenditure, to shore up the company's net worth and to refinance a term loan amounting
to Rs 920.8 crore.

Castex Technologies board at its meeting held on Saturday, 25 February 2017, approved the
issuance of 3.9 crore equity shares of Rs 2 each at a premium of Rs 13 each aggregating to Rs
58.50 crore by way of preferential issue to promoters of the company upon conversion of their
outstanding unsecured loans to the company.

The board also approved to issue upto 4 crore convertible warrants worth at a price of Rs 15 each
aggregating to Rs 60 crore convertible into equal number of equity shares of Rs 2 each at a
premium of Rs 13 each by way of preferential issue to promoters of the company upon
conversion of their outstanding unsecured loans to the company.

The aforesaid proposals, if approved by the lenders, will lead to the change in the capital
structure of the company resulting in significant dilution to the stake held by the existing
promoters of the company. This will also lead to the change in control and management of the
company.

Promoters held 46.86% stake in Castex Technologies end December 2016

MONNET

The total debt of Monnet Ispat, as of March 2017, decreased to Rs 10,330 crore from 12,115 crore and
its interest cost increased to Rs 1,130 crore.

REMEDY

Bankruptcy proceedings for debt-laden Monnet Ispat are likely to start soon, as the Insolvency
Resolution Professional (IRP) appointed under the Insolvency Law has started looking for
suitable buyers.
Earlier this year, Sajjan Jindal-led JSW Steel made an offer to buy a controlling stake in Monnet
Ispat through the strategic debt restructuring (SDR) route. The offer was struck down as the SBI-
led consortium of lenders was not happy with the proposal.

Assets of Monnet Ispat to be put up for sale will include a steel-making plant of 1.5 million
tonnes per annum (mtpa), 0.80 mtpa sponge-iron facility, 2 mtpa pellet plant, 0.96 mtpa sinter
plant and 230 MW captive power plant in Chhattisgarh, BL reports.

RUCHI

For the first time since it was founded in 1986, Ruchi Soya crashed into the red in the year ended March
2016, with a loss of Rs 878.7 crore. Debt ballooned to Rs 4,513.8 crore from Rs 2,568.05 crore two years
back, and lenders started hounding the company to recover their dues, which reportedly tot up to Rs
10,000 crore.

In July 2016, IDFC Bank filed a winding-up petition against Ruchi Soya after it failed to repay its short
term credit. And in February this year the company was ser VED

REMEDY