Banks take tough stand on Bhushan Steel debt rejig

Banks looking for increase in percentage of sustainable part as outlook for the sector improves

Bhushan Steel’s discussions with banks for a loan recast under the scheme of sustainable structuring of stressed assets (S4A) are centred around increasing the sustainable part of the loan.
 
The steel producer had submitted to banks a proposal that said nearly 52 per cent of its Rs 46,000 crore loans were sustainable. Under S4A, banks divide the loan into sustainable and unsustainable parts and restructure the unsustainable portion. S4A can be invoked only when the sustainable part is at least 50 per cent of the unsustainable part. The unsustainable part is restructured by banks.
 
The proposal was in