The bids for Bhushan Steel are also due this Saturday, and according to a bidder, the process is so legally cumbersome that even this will see a delay.
The bids for Binani Cement, which is not on the Reserve Bank of India’s list of first set of 12 companies, is due on December 21, according to the banking source.
The delay, sources said, was on account of finalising the evaluation criteria with few promoters planning to make their bids by tying up with private equity firms.
“There is some confusion over bidding criteria and delisting of listed entities too,” said a banker.
When contacted, Mahender Kumar Khandelwal, insolvency professional for BPSL, and leader and partner of business restructuring at BDO India LLP, declined to comment.
According to the IBC rules, a resolution plan for a company would have to be finalised within 180 days but under special circumstances it could get an extension of another 90 days. Banks are expected to take a haircut of as high as 60 per cent on these accounts with a new bidder taking over part of the existing loans.
The equity value, according to bidders, should be zero and the company concerned should be allowed to delist for a smoother turnaround. The government and the Securities and Exchange Board of India are expected to clarify these issues in the coming days.
BPSL would complete 270 days on April 22. Accordingly, the date for accepting resolution plans has also been revised to January 10.
Around 400 cases have been referred to the NCLT this year. A majority of these have been filed by operational creditors, and around 150 cases by lenders. The remaining cases are filed by corporate debtors. A resolution of these accounts is expected to be a major trigger for corporate lenders but as of now only two accounts have been taken up for resolution at hefty haircuts. Around seven have been directed to undergo liquidation, and another 14 are witnessing further appeals.