SBI Initiates Insolvency Proceedings Against IVRCL

State Bank of India, one of the lenders to the debt-ridden IVRCL Ltd., has initiated insolvency proceedings against the construction and engineering company, according to a notification filed by the firm with stock exchanges. The National Company Law Tribunal has reserved its order in the matter as of now, the company said.

IVRCL is part of a second list of stressed accounts that bankers are trying to resolve under the Insolvency and Bankruptcy Code (IBC), following directions from the regulator. The first list, released in June, consisted of 12 large companies. The second list, released in August, included close to 30 companies including IVRCL. Together the accounts included in the two lists make up roughly half of the bankíng system’s gross non performing assets of Rs 8.4 lakh crore as of September 2017.

For the quarter ended September 30, 2017, IVRCL reported a net loss of Rs 280 crore compared to a loss of Rs 354 crore in the same quarter last year. On December 21, the company informed stock exchanges that it was selling two road assets to Singapore based Cube Highways and Infrastructure for Rs 725 crore.

Shares of IVRCL were trading 5 percent higher at Rs 6.15 apiece at 3pm on the BSE.