Government-owned State Bank of India (SBI) has initiated insolvency resolution proceeding against Ushdev International, a company which was part of the second list released by the Reserve Bank of India. In August, the RBI has directed banks to find resolution for 28 loan accounts by December 13. If banks are unable to put in place a resolution plan before December 13, the RBI said that lead bank should refer these cases to National Company Law Tribunal (NCLT) by December 31.
Ushdev International, was founded by late Vijay Gupta, who started operation as commission agent and later diversified to become a power generating and steel trading company. The promoters have 54 per cent stake in the company and the balance stake is held by the public. The shares of the company reported a loss of Rs 229 crore in fiscal year 2016-17 while it reported a profit of Rs 52 crore a year ago. The shares closed 4 per cent lower than Thursday close at Rs 2.11. Under the Insolvency and Bankruptcy Code, a resolution plan has to be in place within 270 days, failing which the court will rule in favour of liquidation of assets.