International Steel Mills
June 25, 2017
Lenders Pursue Troubled Indian Steel Mills
Written by Sandy Williams
Galvanized steel producers Bhushan Steel and Essar Steel are in serious trouble with their lenders. Banks led by the Reserve Bank of India have initiated insolvency proceedings to recoup losses on delinquent accounts through loan reorganizations.
Bhushan reportedly has outstanding loans of $7.3 billion and Essar Steel $6.97 billion, according to India’s Economic Times. A third company, Electrosteel Steels, owes $1.7 billion. The three steel mills account for nearly half the bad loans in the Indian banking system.
