JSW Steel-AION Capital has emerged as the successful bidder to acquire bankrupt Monnet Ispat and Energy (MIEL), according to a regulatory filing.
JSW Steel-AION Capital has emerged as the successful bidder to acquire bankrupt Monnet Ispat and Energy (MIEL), according to a regulatory filing. The committee of creditors (CoC) of Monnet Ispat and Energy Ltd, which is undergoing insolvency proceedings, had on Tuesday approved the resolution plan submitted by the only bidder Sajjan Jindal’s JSW Steel along with AION Capital.
“The consortium has been declared as the successful resolution applicant by the Committee of Creditors of MIEL on April 10, 2018, and has received a Letter of Intent (LoI) dated April 12, 2018,” JSW Steel said in a statement. JSW Steel Limited and AION Investments Private II Limited (AION) had submitted a bid for Monnet Ispat and Energy Limited (MIEL) under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code 2016.
“The consortium has accepted the terms of the LoI. The closure of the transaction shall be subject to obtaining necessary regulatory approvals, including from the National Company Law Tribunal and the Competition Commission of India,” JSW Steel said.
The insolvency resolution process of the company began on July 18, 2017. The resolution plan, submitted jointly by JSW Steel and AION Capital, was the only offer that Monnet Ispat and Energy received on December 23 — the last date for the submission of the bids.
Monnet Ispat & Energy was the first stressed company to get resolution plans from prospective bidders. It was among the 12 NPAs referred by the Reserve Bank of India for insolvency proceedings. The company owes more than Rs 10,000 crore to its lenders.
Besides MIEL, JSW Steel along with NuMetal had submitted bids for Essar Steel, another steel firm under insolvency proceedings, on April 2. JSW Steel is a part of the diversified USD 12 billion JSW Group, which has presence in steel, energy, infrastructure, cement, ventures and sports.
JSW Steel is the leading integrated steel company in India with an installed steel-making capacity of 18 MTPA. JSW Steel’s plant at Vijayanagar in Karnataka is the largest single location steel producing facility in the country with a capacity of 12 MTPA.