Canara Bank Files Insolvency Plea Against Gayatri Projects

Canara Bank has filed a fresh insolvency petition against Hyderabad-based engineering, procurement and construction (EPC) company Gayatri Projects, increasing pressure on the debt-laden borrower that owes lenders more than ₹6,000 crore, the Economic Times of India reported. A failed restructuring plan first initiated in 2015 and subsequent default have marked the account as a non- performing asset in the books of banks. Canara is the second bank to file an insolvency plea against the company even as a petition by lead lender Bank of Baroda NSE 0.79 % filed in February is awaiting approval from the Hyderabad bench of the National Company Law Tribunal (NCLT). Despite rules saying that the application of financial creditor should be admitted within 14 days, it has been delayed without any reason," said a person in the know. "Meanwhile, the market cap of the company is regularly declining day by day and all banks can do is sell the pledged shares in the open market for a loss." Read more.