SBI Files Insolvency Proceedings Against Bajaj Hindusthan Sugar Ltd., A Bajaj Group Enterprise
Bajaj Hindusthan Sugar Ltd. ("BHSL") is a part of the Bajaj Group of Companies and is a leading manufacturer of sugar and ethanol in India. BHSL has 14 sugar manufacturing plants across Uttar Pradesh which have aggregate sugarcane crushing capacity of 136,000 TCD (tonnes crushed per day) and alcohol distillation capacity of 800 KLD (kilolitres per day). Besides, BHSL is also one of...
Bajaj Hindusthan Sugar Ltd. ("BHSL") is a part of the Bajaj Group of Companies and is a leading manufacturer of sugar and ethanol in India. BHSL has 14 sugar manufacturing plants across Uttar Pradesh which have aggregate sugarcane crushing capacity of 136,000 TCD (tonnes crushed per day) and alcohol distillation capacity of 800 KLD (kilolitres per day). Besides, BHSL is also one of the largest producers of ethanol with an output of 38 million litres of ethanol per year. Additionally, BHSL generates 430 MW (approx.) of power from the bagasse produced at its sugar mills and supplies nearly 100 MW from it to the Uttar Pradesh State Grid. It also owns five 90 MW coal-fired power plants adjacent to its sugar units which generate another 450 MW of electricity for the State Grid. The Company is also listed with the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
The Company had availed credit facilities from financial institutions including the State Bank of India and its accounts were declared Non Performing Asset after payment defaults. The total borrowings of BHSL from various lenders stand at over Rs. 4,600 Crores, as per a Regulatory Disclosure made by the Company.
In a Regulatory filing dated 16.08.2022, BHSL under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has disclosed that State Bank of India has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the National Company Law Tribunal, Allahabad Bench, seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against BHSL over payment defaults.
The matter is yet to be listed before the NCLT Allahabad Bench.