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  1. Monnet Ispat: Lenders to vote on Rs 3,750-crore Aion-JSW bid in 10 days

Monnet Ispat: Lenders to vote on Rs 3,750-crore Aion-JSW bid in 10 days

The consortium of lenders to Monnet Ispat, led by State Bank of India, are expected to complete the voting process on the sole bid received for the loss-making steelmaker from the consortium of Aion Investments and JSW Steel in the next 10-12 days.

By: and | Mumbai | Published: March 9, 2018 1:03 AM
Monnet Ispat, lenders, aion, jsw bid, sion bid, state bank of india The consortium of lenders to Monnet Ispat, led by State Bank of India, are expected to complete the voting process on the sole bid received for the loss-making steelmaker from the consortium of Aion Investments and JSW Steel in the next 10-12 days.

The consortium of lenders to Monnet Ispat, led by State Bank of India, are expected to complete the voting process on the sole bid received for the loss-making steelmaker from the consortium of Aion Investments and JSW Steel in the next 10-12 days, a source with direct knowledge of the development said on Thursday. “We expect the crucial voting to be completed in the next 10-12 days. The process will have to be initiated by the bankers. The vote will decide if the bid will be accepted by the committee of creditors,” the source said. As per Section 30(4) of the Insolvency and Bankruptcy Code, 2016, the committee of creditors (CoC) may approve a resolution plan by a vote of not less than 75% of voting share of the financial creditors. The bid for Monnet Ispat is valued around Rs 3,750 crore, which includes bank loans, working capital loans and debt and equity options, sources close to the deal said. JSW Steel did not comment on queries regarding this story.

In a stock exchange notification on March 3, the company said the plan received from the consortium has been circulated to all the members of the CoC for obtaining internal approvals so that the resolution plan can be put to vote in the last week of March. The corporate insolvency resolution process was initiated against Monnet Ispat on July 18, 2017, and the process has to be completed before April 13, 2018. Monnet Ispat owns an integrated steel plant of 1.5 million tonne per annum along with associated facilities including sponge iron plant, pellet plant, sinter plant and a captive power plant in Chhattisgarh. It also owns coal beneficiation facilities in Chhattisgarh and Odisha. The company was one of the top 12 accounts to be referred to the National Company Law Tribunal. For FY17, the company reported a consolidated net loss of Rs 2,132 crore on net sales of Rs 1,375 crore, according to data from the BSE. The total debt of the company stood at Rs 12,262 crore. JSW Steel is one of India’s leading steel makers with a total capacity of 18 million tonnes per annum. It has plants in Karnataka, Tamil Nadu and Maharashtra.

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