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Bank of Baroda takes Gayatri Projects to NCLT over unpaid dues

State-run Bank of Baroda has approached a bankruptcy court for recovery of its dues to Gayatri Projects, promoted by former Rajya Sabha MP T Subbarami Reddy, even as the company is making a desperate plea to lenders to consider a debt-recast proposal, two people aware of the matter told ET.

The company owes little less than ₹6,000 crore to the country’s financial system, with Bank of Baroda exposure being nearly a quarter of the total loans, a third person said.

The Hyderabad bench of the National Company Law Tribunal will hear the lender’s plea on April 12.

“Gayatri Projects has submitted a debt restructuring plan to lenders” and all banks have “deliberated” on it and are expected to “get back in ten days with their queries,” the company told ET in a mailed response to queries.

However, bank officials said that they have approached NCLT since they are unsure if all lenders will accept the proposed plan. The company has appointed EY to advise it on the debt restructuring proposal.

The Hyderabad-based company’s fund and non-fund based borrowing was at ₹5,917 crore as of September 2021. The company’s market cap stood at ₹465 crore and its shares closed at ₹24.85 apiece on Thursday.

“With regards to the filing in NCLT, they (the lenders) want to pursue in parallel the recovery proceedings either through NCLT or debt restructuring,” the company said in its email response. CP Jain & Co, which was appointed by Bank of Baroda to conduct a forensic audit last December, is yet to submit its report, one of the people cited above said. The company has defaulted in payment of dues to lenders.

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