By Malvika Gurung
The sugar producer had informed the domestic stock exchanges last week that SBI had filed a case against it at the National Company Law Tribunal under the insolvency code, without providing much details of the case.
According to people privy to the matter, the public sector lender has dragged the almost 9 decades old company to bankruptcy over a loan order of Rs 395 crore, stated an ET report.
SBI stated at the NCLT that it attempted to restructure the loans of Simbhaoli Sugars in 2015 but the company has still failed to service the debt. The lending behemoth added that the sugarcane mills company has been defaulting since Nov 1, 2018.
According to the ET report, NCLT has not admitted Simbhaoli Sugars on prospects of bankruptcy yet.
Shares of the micro-cap company traded 2.33% lower at Rs 18.9 apiece at 3:10 pm on Thursday. The sugar manufacturing scrip has eroded over 50% of its value from its 52-week high, plunging 54.4% in less than 4 months.
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