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Electrosteel Steels reports increased loss after beginning insolvency resolution process

<p style="text-align: justify;">Debt-laden company Electrosteel Steel, that is undergoing insolvency resolution, reported a quarterly increase in losses for the quarter ending September, which is when the company started the resolution process with a court-appointed resolution practitioner.  Losses

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Published - Nov 15, 2017 6:02 AM

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Debt-laden company Electrosteel Steel, that is undergoing insolvency resolution, reported a quarterly increase in losses for the quarter ending September, which is when the company started the resolution process with a court-appointed resolution practitioner.  Losses at the company widened by 23% to Rs 297 crore from Rs 242 crore in the quarter ending June. Total expenses, however, slid too by 4% at Rs 1,085 crore. While total income from operations suffered a marginal hit by 1.4% at Rs 762 crore, net of GST, "other income" declined by almost 86%.

The Jharkhand-based company that has an integrated steel plant as well as a ductile iron (DI) pipe facility had a net debt of Rs 11,710 crore at the end of the year 2016-17 and was referred to the Kolkata bench of the NCLT by the State Bank of India. The company was admitted by the tribunal for corporate insolvency resolution on July 21, when the board was suspended and Dhaivat Anjaria of PricewaterhouseCoopers was appointed as the interim resolution professional.

According to media reports, the company has evinced interest from buyers like Tata Steel, Mesco Steel, Srei Infrastruture, Edelweiss as well as from the Piramal Group

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