Jharkhand govt department challenges Orissa Manganese resolution process

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Mumbai | Published: May 11, 2018 4:04:40 AM

OMML’s businesses include exploration, development, mining and processing of mineral assets. It has six manganese ore mines in Odisha and one iron ore mine in Jharkhand, according to data on its website.

jharkhand govt,  Orissa Manganese & Minerals, resolution process, CoCThe resolution process for Orissa Manganese & Minerals (OMML), which owes close to Rs 5,400 crore to its lenders, has been challenged by the mining department of the government of Jharkhand. (Website)

The resolution process for Orissa Manganese & Minerals (OMML), which owes close to Rs 5,400 crore to its lenders, has been challenged by the mining department of the government of Jharkhand. In a letter to resolution professional (RP) Sumit Binani, the district mining officer of the West Singbhum district has questioned the RP’s decision to proceed with the resolution process without making the mining department a member of the committee of creditors (CoC). The mining officer said they have submitted claims worth around `850 crore, and that under section 25(2) of the Mines and Minerals Development and Regulation (MMDR) Act, mining dues have first charge on the assets of the lease holder (OMML).

“You are requested to kindly apprise us as to how without making us a member of the CoC could you proceed for inviting bids for the company, of which first charge is of the state government by virtue of the above section of the MMDR Act 1957,” the mining officer wrote in the letter, a copy of which has been seen by FE. Sources said one of the likely reasons for not considering the request of the mining department could be incomplete claims form from it. OMML is a fully-owned subsidiary of Adhunik Metaliks, which is also undergoing resolution at the National Company Law Tribunal (NCLT).

OMML’s businesses include exploration, development, mining and processing of mineral assets. It has six manganese ore mines in Odisha and one iron ore mine in Jharkhand, according to data on its website. It was admitted by the NCLT for corporate insolvency resolution process on August 03, 2017. Its lenders include State Bank of India, Allahabad Bank, Punjab National Bank, Bank of Baroda, ICICI Bank, among others. The insolvency petition had been filed by SBI.

Bankers to OMML have approved a resolution plan submitted by Kolkata-based Ghanashyam Mishra & Sons, which promises an upfront cash payment of Rs 250 crore. Some of the other financial creditors have approached the Kolkata bench of the NCLT challenging the resolution plan. The case has been admitted by the Kolkata bench of the NCLT and in a hearing last week, it has asked the RP to file a reply on, among other issues, why it has not included the mining department as a member of the CoC.

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