SBI has brought the claim before the Allahabad bench of the National Company Law Tribunal as a financial creditor (NCLT).

"We believe that State Bank of India, financial creditor through its advocate has launched Corporate Insolvency Resolution Process of Bajaj Hindusthan Sugar Ltd.," stated Bajaj Hindusthan Ltd. in a regulatory filing. In accordance with Section 7 of the 2016 Insolvency and Bankruptcy Code, a petition has been filed. The company reported a consolidated net loss of Rs 267.54 crore and a revenue of Rs 5,607 crore in the most recent fiscal year. On August 12, the company announced that during the fiscal year's first quarter, which ended in June, its net loss was Rs. 45 crore and its total revenue was Rs. 1,538 crores.

"During the June '22 quarter, due to delayed payment of loan instalment and coupon rate interest on optionally convertible debentures, the lenders have categorised the company's account as Non-Performing Assets (NPA) as per the RBI norms on loan classification.

According to the firm's financial statement for the first quarter's notes of accounts, the lenders of the company signed an ICA (Inter Creditors Agreement) on January 28, 2022, for the settlement of the company's accounts. The company's liquidity situation has improved as a result of the debt restructuring under the S4A plan of the RBI.

However, Bajaj Hindusthan had stated that "the company is further negotiating with the lenders a debt resolution plan to find a lasting solution to boost its liquidity," keeping in mind the condition of outstanding cane dues and money for servicing debt obligations. The resolution plan calls for cutting its total debt, realigning its capital structure, paying farmers' cane debts, and expanding the supply and availability of cane, among other things. In order to streamline operations and increase the company's value, the company is also "exploring/evaluating" several options for corporate restructuring, according to Bajaj Hindusthan.

India's top producer of sugar and ethanol is Bajaj Hindusthan Sugar Ltd. Its headquarters are in Mumbai, Maharashtra, and it is a member of the Bajaj Group (Kushagra). In Uttar Pradesh, the firm has fourteen sugar plants.

These facilities have a combined daily crushing capacity of 1,36,000 tonnes of sugarcane and a daily distillation capacity of 800 kiloliters of alcohol. It is also one of the biggest producers of ethanol, producing 38 million litres of ethanol annually at the moment. The corporation has doubled its annual capacity for ethanol production to about 218 million litres.

According to Bajaj Hindusthan, the business produces about 430 MW of electricity from the bagasse produced at its sugar mills and sends about 100 MW of it to the UP State Grid. Additionally, five 90 MW coal-fired power plants that provide 450 MW of additional electricity for the state grid are located next to the sugar mills.