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Watch: Defaulting companies: Why investors should be cautious

Anand Adhikari, Deputy Editor of Business Today, talks about at least 400 cases being referred to bankruptcy code. Many of 30% of cases have been filed by lending banks and these loans are completely unsustainable in the books of corporate debtors and these companies are having huge losses. Surprisingly, there is a lot of investors' interest in bankruptcy-referred cases in the last six months and some of these companies have given returns from likely to 20 per cent to 90 per cent. Bhushan Steel has given a return of 30 per cent and Electrosteels has given a return of almost 90 per cent and Jaypee Infratech has given a return of 95 per cent. The value of equity in these companies is technically zero because of very high unsustainable debt