Lenders approve Electrosteel strategic restructuring: Srcs

Lenders to Kolkata-based Electrosteel Steels have given an in-principle approval for invocation of strategic debt restructuring. This means banks have the power to convert their debt into equity to acquire majority control in a defaulting company and bring in new promoters if required.Sources have told CNBC-TV18 that the joint lenders forum is likely to submit a report on the company's revival plan in the next 90 days and take over the firm to bring in new investors.It is learnt that the lenders are in talks with 2 investors, one of which is already carrying out due diligence on Electrosteel.As per RBI norms, Electrosteel will remain a standard account for the next 18 months.