Anil Agarwal group-owned Vedanta said on Saturday it has won the bid to acquire bankrupt Electrosteel Steels in an insolvency auction. “Vedanta Limited hereby informs that it has been declared as the successful resolution applicant by the committee of creditors (CoC) for Electrosteel Steels Ltd under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016 and has received a Letter of Intent (LoI) today,” the company said in a BSE filing.
Vedanta said it has accepted the terms of the LoI. The closure of the transaction will be subject to compliance with applicable regulatory requirements and as per the final terms approved by the National Company Law Tribunal, it added. FE had reported on Friday that the objections from Renaissance Steel, which had questioned Vedanta’s eligibility to bid, had been overruled.
The resolution professional had received bids from Vedanta, Edelweiss Alternative Asset Advisors, Tata Steel and Renaissance Steel in January this year. On July 21 last year, the NCLT had admitted State Bank of India’s (SBI) insolvency petition against Kolkata-based Electrosteel Steels. The company, which owes lenders Rs 11,309 crore, had been referred to the bankruptcy court under Section 7 of the IBC following a nudge from the Reserve Bank of India (RBI).