JSW Steel to NCLT: Awaiting tribunal nod to implement Rs 1,550-cr resolution plan for ACCIL

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Published: July 31, 2020 2:15 AM

In its application, Interups had quoted two disclosures submitted by the JSW Group based on which it assumed “that the said acquisition is no longer viable or feasible to the JSW Group.”

JSW said that the information memorandum it had submitted in conformity with Sebi regulations was confidential and meant to provide investors with enough caution while investing in the group.JSW said that the information memorandum it had submitted in conformity with Sebi regulations was confidential and meant to provide investors with enough caution while investing in the group.

JSW Steel on Thursday informed the National Company Law Tribunal (NCLT) that it was only awaiting approval from the tribunal to implement its Rs 1,550-crore resolution plan for Asian Colour Coated Ispat (ACCIL).

The NCLT was hearing a petition by the US-based Interups that, in a petition last month, had urged the NCLT to direct the resolution professional (RP) to allow it submit a resolution plan for the firm for which lenders had last year chosen a JSW Group company as the preferred bidder.

In its application, Interups had quoted two disclosures submitted by the JSW Group based on which it assumed “that the said acquisition is no longer viable or feasible to the JSW Group.”

JSW said that the information memorandum it had submitted in conformity with Sebi regulations was confidential and meant to provide investors with enough caution while investing in the group. By approaching NCLT, Interups was only trying to mislead the tribunal using such documents and information which were part of the statement in the risk factor of the information memorandum.

JSW said it is also in the possession of a commitment letter from the Deutsche Bank for an amount upto `1,650 crore for the said acquisition.

On its part, JSW also cited a June 15 filing made by the company with the US Securities Exchange Commission in which, in relation to their ACCIL proposal, Interups has said, “there is also no guarantee that the registrant will be able to arrange monies and the transaction will consummate.”

ACCIL was admitted for resolution on July 20, 2018, on an application by State Bank of India. In June, 2019 lenders approved JSW Group’s bid for the company.

Interups had on June 12, 2020, expressed its willingness to bid which would meet the twin-fold test of “maximisation of value” and “viability and feasibility” for ACCIL. It also sent a follow-up letter on July 8, but the RP denied to accept the offer, stating that the resolution process for the company was not yet over.

JSW on Thursday also said that Interups plan cannot be entertained at this stage, since insolvency process is time-bound and that needs to be respected. .

Interups’ bid is in excess of Rs 2,000 crore. In its application to the NCLT, the company also urged the NCLT to direct the RP to put its bid for voting by the Committee of Creditors (CoC) and direct the RP to allow it to provide access to the data room and other information/documents with respect to ACCIL so as to complete due diligence.

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