InvestorQ : Why is SBI planning to invoke personal guarantees in the case of the loans given to Bajaj Hindustan?
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Why is SBI planning to invoke personal guarantees in the case of the loans given to Bajaj Hindustan?

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Rashi Mehra answered.
2 months ago
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Bajaj Hindustan, the sugar company belonging to the Kushagra Bajaj group, has been defaulting on loans taken from a consortium of banks led by SBI. With little progress in the case, even after two rounds of restructuring offered to Bajaj Hindustan, SBI now plans to invoke personal guarantees of the promoters. The company has already been referred to the National Company Law Tribunal (NCLT) for debt resolution.

As of date, the NCLT is yet to admit the SBI petition for insolvency resolution. The irony is that even after availing two debt restructuring, Bajaj Hindustan Sugars Ltd still owes the banks Rs4,771 crore. SBI has specifically highlighted that the restructuring had assumed and imposed certain financial discipline but Bajaj Hindustan had been unwilling to comply. Bajaj Hindustan Sugars Ltd has 14 factories, largely in the Northern belt of India, with crushing capacity of 136,000 tonnes of sugarcane daily.

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