SBI-led lenders propose recasting Bombay Rayon's Rs 5,000 crore debt: Sources

Bombay Rayon's  lenders have proposed to recast its Rs 5,000 crore debt via the Scheme for Sustainable Structuring of Stressed Assets (S4A), officials privy to the developments told CNBC-TV18.

Of the entire debt, 10 percent could be converted into equity, sources said. Nearly 55-60 percent of its debt will be considered sustainable and could be treated as standard after putting S4A scheme.

Bombay Rayon has debt of little over Rs 5,000 crore. In the October-December 2016 quarter, the company had reported losses of about Rs 4,500 crore.

A 23-member bank consortium, headed by the State Bank of India, has approved the proposal for implementing S4A for the company. The case is now pending with the Oversight Committee (OC) for S4A clearance.

The consortium also comprises lenders such as ICICI Bank, Citibank, Standard Chartered and Axis Bank.