07 , July , 2022
Punjab National Bank has initiated the loan recovery procedure from Burnpur Cement of West Bengal and in the process has put up for sale the account of loss-making firm. The bank has invited bids from Asset Reconstruction Companies (ARCs) to recover loan outstanding of over Rs 50 crore.
Announcing the Non-Performing Account (NPA) on sale, PNB said the company owes Rs 50.18 crore as loan. The lender has put the reserve price for the sale of the account to ARCs/permitted transferees at Rs 20 crore.
To speed up the due diligence formalities for prospective buyer, PNB said it will bring copies of all documents at one place for the verification process.
The bidding process will be conducted on PNB's e-auction portal on July 16, 2022.
Burnpur Cement has accumulated loss of over Rs 58.97 crore resulting in erosion of net worth of the company. The net worth of the company is negative at (-) Rs 282.03 crore.
Bank at its sole discretion may withdraw the account offered for sale, without assigning any reasons, it added.
(WITH INPUTS TAKEN FROM PTI)