A clutch of large corporates including Vedanta, Tata Steel and Renaissance Steel India have submitted resolution plans for the debt-laden steel-maker Electrosteel Steels.
A clutch of large corporates including Vedanta, Tata Steel and Renaissance Steel India have submitted resolution plans for the debt-laden steel-maker Electrosteel Steels. Edelweiss Alternative Asset Advisors (acting as the investment advisor of EISAF II and EC Holding with support of Edelweiss Asset Reconstruction Company) has also submitted a resolution plan, Electrosteel Steels said in a stock exchange notification. Electrosteel Steels is the first company among the top 11 stressed assets that were admitted by the NCLT for insolvency proceedings to have put out a list of the bidders it has received from potential investors. Shares of the company closed almost 5% higher at Rs 6.70. “The resolution professional (RP) is in the process of verifying the same (resolution plans) in accordance with the provisions of the IBC and related rules and regulations issued thereunder,” Electrosteel Steels said. The Jharkhand-headquartered company that posted a net loss of Rs 1,463 crore on revenues of Rs 2,541 crore in FY17 owes it financial creditors more than Rs 13,000 crore, data from the creditors’ claims list showed. The company owes Rs 4,965 crore to State Bank of India, Rs 861 crore to Punjab National Bank, Rs 655 crore to Canara Bank, Rs 639 crore to UCO Bank and Rs 637 crore to Indian Overseas Bank, claims admitted by the National Company Law Tribunal (NCLT) showed.
Some of the other financial creditors include Union Bank, Allahabad Bank and Bank of India. The corporate insolvency resolution process was initiated against Electrosteel Steels under the Insolvency and Bankruptcy Code, 2016 (IBC) on July 21, 2017 after the Kolkata Bench of the NCLT admitted the plea against the company. Dhaivat Anjaria from PwC was appointed as the interim resolution professional (IRP) for the company. In September, the RP invited expressions of interest from potential bidders. The last date for the final submission of resolution plans was January 4, 2018.
Electrosteel Steels is in the process of setting up a 2.51 million tonne per annum (MTPA) greenfield integrated steel and ductile iron plant in the Bokaro district of Jharkhand, data from its latest annual report showed. Its product range includes pig iron, billets, TMT bars, wire rods and ductile iron pipes.
The other companies from the Reserve Bank of India’s first list of corporate defaulters that were admitted for insolvency proceedings include Jyoti Structures, Essar Steel, Monnet Ispat and Energy, Alok Industries, Amtek Auto, Bhushan Steel, Bhushan Power & Steel, ABG Shipyard, Lanco Infratech and Jaypee Infratech.