The Kolkata bench of the National Company Law Tribunal (NCLT) on Thursday approved the resolution plan submitted by Tata Steel subsidiary Tata Steel Mining (TSML) for debt-laden Ferro alloys and stainless steel manufacturer Rohit Ferro-Tech Limited (RFTL).
In a stock exchange filing, Tata Steel said the NCLT orally pronounced its order approving the resolution plan submitted by TSML for acquisition of RFTL.
Notably, Rohit Ferro-Tech’s resolution professional filed Tata Steel Mining’s resolution plan, which had been approved by the lenders, with the NCLT in June, 2021 for its approval. The committee of creditors (CoC) approved the resolution plan, received from the TSML, with the requisite majority on June 5, 2021. The NCLT, Kolkata Bench in February, 2020 admitted the State Bank of India’s petition for initiation of the Corporate Insolvency Resolution Process (CIRP) against RFTL under Section 7 of the Insolvency and Bankruptcy Code (IBC).
The company had made a loss of `679.36 crore for FY20, while revenue from operation stood at `738.35 crore. Its manufacturing units/divisions are at Bishnupur and Haldia (West Bengal) and Jajpur (Odisha).
Tata Steel Mining is a subsidiary of Tata Steel and is headquartered in Bhubaneswar, Odisha. The company works to develop commercial mining opportunities in addition to Ferro Alloys business.