Resolution of few steel stressed assets likely within 3 months: Edelweiss

The focus of the market these days is on the twelve companies that are being marched the bankruptcy court. Investors and others are keen to know if these companies can be profitably sold or at least with lower losses for banks. On that depends whether the other stressed assets that are on sale can be successfully rescued?

Siby Antony, ARC Chief, Edelweiss in an interview to CNBC-TV18 shares his perspective on the above developments.

The Reserve Bank of India (RBI) last week sent bankers the list of 12 stressed accounts that they must resolve through the Insolvency and Bankruptcy Code (IBC), sources privy to the developments told CNBC-TV18.

The 12 accounts are Essar Steel, Bhushan Steel, Bhushan Power, Alok Industries, Electrosteel Steels, Jaypee Infratech, Lanco Infratech, Monnet Ispat, Jyoti Structures, ABG Shipyard, Amtek Auto and Era Infra, they said.

Antony said they are lenders to Amtek Auto and they are in the process of due diligence with regards the company's assets. He said more than 40 percent of Amtek Auto’s debt have been provided for by the banks.

When asked if they have done due diligence for any other of the assets, which look good enough to buy, he said there a few steel assets which could be looked at.

Stressed assets of Essar Steel, Electro Steel and Monnet Ispat could be in the pipeline for resolution, he said, adding that it could take maybe even less than three months for some of them.

According to him, it is likely that most of the twelve companies will find buyers - either their own promoters or new ones.

All this could be positive for banks and the economy.

For the full interview, watch video