NEW DELHI: promoters of debt-laden Bajaj Hindusthan Sugars will sell 10.6 per cent stake to lenders to settle Rs 3,500 crore of bad debt as per a resolution plan approved by the RBI’s overseeing committee. Bajaj Hindusthan, which has 14 mills in Uttar Pradesh with cane crushing capacity of 1.36 lakh tonnes per day, has a debt of nearly Rs 8,300 crore, of which nearly Rs 3,500 crore has been classified as “unsustainable” in the corporate debt restructuring scheme.

In a BSE filing on Friday, Bajaj Hindusthan said “the‘S4A Resolution Plan’ proposal submitted by the lead bank (SBI) on behalf of Joint lenders’ Forum (JLF) for the company to OveRs eeing Committee (OC) have been considered and approved for implementation.”

Of the total debt of 8,284.59 crore considered under this scheme, the sustainable debt is Rs 5,789.35 crore and unsustainable Rs 3,495.25 crore.

The central bank’s S4A (Scheme for Sustainable Structuring of Stressed Assets (S4A) framework stipulates dilution in promoters ’ shareholding, at least in the same proportion as that of unsustainable to total debt.