-
ALSO READ
Moody's: Asia Pacific corporates to see continued stability in rating trend in 2018 Moody's: Default rate for Asian high-yield non-financial corporates to stay low in 2018 Moody's: Default rate for Asian high-yield non-financial corporates to stay low in 2018 Moody's: Benign financial conditions support favourable credit picture in 2018; QE unlikely to have created big asset bubbles Moody's: Effective policies to promote female employment will boost sovereign creditworthiness -
As per Bhushan Steel's website, it is the third largest secondary steel producer in the country with annual capacity of 5.6 million tonne. Tata Steel, one of the bidders for Bhushan Steel, has said it has been identified as the highest bidder for acquiring controlling stake in the debt-ridden firm undergoing insolvency proceedings. Besides Tata Steel, JSW Living Pvt Ltd (a joint venture between JSW and Piramal Enterprises) and a consortium of the Bhushan Steel's own employees had also submitted bids to take over assets of the bankrupt firm on February 3, 2018. The agency also said that meaningful resolutions of NPAs would significantly improve banks' asset quality metrics. Beyond asset quality, the effect on profitability and capital will depend on the haircuts that lenders take in the resolution process. "In this context, the Bhushan Steel transaction is an important milestone, because it is the first and largest of the 12 large non-performing asset in the NCLT resolution process. If the other steel assets are resolved with similar haircuts, many banks can expect a positive effect on profitability and capital," it added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
RECOMMENDED FOR YOU