State-owned SBI has filed an insolvency petition against the country’s largest sugar firm Bajaj Hindusthan Sugar Ltd. SBI as a financial creditor has filed the plea before the Allahabad bench of the National Company Law Tribunal (NCLT).

In a regulatory filing, Bajaj Hindusthan Ltd informed that “we understand that State Bank of India, financial creditor, through its advocate has initiated Corporate Insolvency Resolution Process of Bajaj Hindusthan Sugar Ltd”.

The petition has been filed under Section 7 of the Insolvency and Bankruptcy Code 2016. In the last fiscal year, the company had posted a consolidated net loss of Rs 267.54 crore and a turnover of Rs 5,607 crore.

On August 12, the company reported that for the quarter ended June, its net loss stood at Rs 45 crore and total income at Rs 1,538 crore.

During the June 2022 quarter, due to delayed payment of loan installment and coupon rate interest on optionally convertible debentures, the lenders have classified the account as non-performing assets under the RBI regulations on loan classification.

The lenders of the company signed an ICA (Inter Creditors Agreement) on January 28 for the resolution of the company’s accounts, the company had said in the notes of accounts of financial statement for the first quarter.

The debt restructuring has improved the company’s liquidity position.

“However, keeping in view the status of outstanding cane dues and funds for servicing debt obligations, the company is further discussing with the lenders a debt resolution plan to have a lasting solution to improve its liquidity,” BajajHindusthan had said.