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This is the third large corporation to be resolved under the Insolvency and Bankruptcy Code after Bhushan Steel and Electrosteel Steels The lenders in Adhunik Metaliks (AML) will suffer haircut of about 92% and will be satisfied with Rs 410 crore against their outstanding debt of Rs 5,370 crore after the Kolkata Bank of the National Tribunal for Company Law (NCLT) on Tuesday approved the resolution plan submitted by Liberty House based UK.
This is the third major company to be resolved the Code of Insolvency and Bankruptcy (BAC) after Bhushan Steel and Electrosteel Steels. In the case of Bhushan Steel, bankers were lucky enough to get by with a haircut of only 37%; the haircut for Electrosteel Steels was a steep 60% incline.
The Jinan KR court said Tuesday, "… the company's stimulus package in accordance with the approved resolution plan will come into effect with immediate effect." Group, in a statement, said he was ready to complete all activities and start relaunching Adhunik Metaliks, the flagship company of the Adhunik group.
Notably, the AML Creditors Committee had approved Liberty House's resolution plan with an overwhelming 99.94% majority on July 5, the last day of the extended deadline for the resolution process. insolvency of companies.
There were only two resolution seekers for the steel fabrication company – Liberty House, a member of the GFG Alliance led by Sanjeev Gupta; Maharashtra Seamless group DP Jindal. Liberty House was identified as the highest bidder (H1) by the creditors, while the Maharashtra Seamless plan was rejected to offer less than the liquidation value. We have significant ambitions for India and the approval to acquire Adhunik is a milestone on our path towards implementing our vision for sustainable steel production and manufacturing in downstream in the country.
AML has an integrated steel mill at Odisha & # 39; s Sundergarh. However, currently the factory is not operational due to the unavailability of energy. The company, incorporated in 2001, is engaged in the production of a wide variety of standard quality special steel for various applications such as automotive, engineering, oil and gas , telecommunications, defense, energy, railways and construction. The NCLT approved the resolution plan submitted by Liberty House for Zion Steel, another Adhunik group company, on July 10. According to sources, under the composite plan for Adhunik Metaliks and Zion Steel, Liberty House offered to pay Rs 425 crore to the financial creditors. Adhunik Metaliks owes up to 18 financial creditors, led by the State Bank of India (SBI), Rs 5,370 crore. "This amount includes the company guarantee provided by AML for other group companies," sources told FE.
In addition to SBI, the AML lenders are National Bank of Punjab, ICICI Bank, IFCI, Punjab & Sind Bank, UCO Bank, Allahabad Bank, Bank of Baroda, Corporation Bank and SREI Infrastructure Finance, among others. Petitions for bankruptcy against AML, Zion Steel and another company of the Adhunik Group, Orissa Manganese & Minerals (OMML) were admitted by the Kolkata Bank of NCLT last August.
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