Bajaj Hindusthan Sugars, an integrated sugar and ethanol manufacturer, has successfully reduced its debt from Rs 4,500 crore to Rs 500 crore, leading to the dismissal of an insolvency petition against the company. The National Company Law Tribunal (NCLT) approved the withdrawal of the petition by the State Bank of India (SBI), following a significant decrease in the company's outstanding debt.
The insolvency petition, originally filed due to Bajaj Hindusthan Sugars' substantial debt to a consortium of lenders led by SBI, was officially dismissed on October 25. SBI's share of the original debt was Rs 1,100 crore. The decision came after Bajaj Hindusthan Sugars cleared overdue amounts and pledged to address future overdues with associated interest. This commitment was recognized by NCLT, which permitted the withdrawal of the main petition.
The resolution process did not face any objections from senior counsel for Bajaj Hindusthan Sugars. The dismissal of the insolvency petition was described as a "win-win" for all stakeholders by Neeraj Jha of Bajaj Group. Stakeholders include lenders, governments and their agencies, employees, shareholders and investors, and sugarcane farmers.
Following the announcement of the dismissal, Bajaj Hindusthan Sugars' stock gained 7.91 per cent to close at Rs 25.38. The company operates 14 mills in Uttar Pradesh with a sugarcane crushing capacity of 136,000 TCD and alcohol distillation capacity of 800 KLD.
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