India's Bhushan, Essar Steel Among 12 Firms Being Moved to Insolvency Courts

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India's central bank has asked lenders to initiate bankruptcy proceedings against a dozen companies, including Essar Steel, Bhushan Steel Ltd, Monnet Ispat and Energy Ltd, sources with direct knowledge of the matter said. This follows a change enacted in laws last month that gives the Reserve Bank of India greater power to address the $150 billion stressed loan problem plaguing growth in Asia's third-largest economy, Reuters reported. This week, the RBI said it had identified 12 of the country's biggest loan defaulters. Jaypee Infratech, Electrosteel Steels, unlisted Bhushan Power & Steel, textiles maker Alok Industries , ABG Shipyard and Jyoti Structures are also among the firms that will be taken to insolvency courts by the RBI, said the sources, who asked not to be named as the list was not public. The RBI has yet to officially name any of the 12 companies, which account for about 2 trillion rupees ($31 billion) of India's non-performing loans, or roughly 25 percent of all the country's bad loans. Read more.