The lenders of debt-laden Monnet Ispat and Energy Ltd (MIEL), which is undergoing insolvency proceedings, have approved the resolution plan submitted by the only bidder JSW Steel-AION Capital.
The insolvency resolution process of the company began on July 18, 2017. The resolution plan, submitted jointly by JSW Steel and AION Capital, was the only offer that Monnet Ispat and Energy received by December 23 -- the last date for the submission of the bids.
"...pursuant to the provisions of Insolvency and Bankruptcy Code 2016, the committee of creditors...has approved the resolution plan submitted by AION Investments Private II Ltd and JSW Steels (herein after referred to as the Resolution Applicant) by 98.97 per cent favourable voting through the e-voting process," MIEL said in a BSE filing.
Yesterday, the company had said that a meeting of committee of creditors (CoC) was held on April 7, 2018, and the resolution applicant of the company has presented the plan before the CoC and the same has been put to vote through e-voting commencing on April 9, 2018 from 10 am onwards till 10 am on April 10, 2018.
Monnet Ispat & Energy was the first stressed company to get resolution plans from prospective bidders. It was among the 12 NPAs referred by the Reserve Bank of India for insolvency proceedings. The company owes more than Rs 10,000 crore to its lenders.
As per the rules, the entire insolvency process has to end within 270 days. Priority should be 180 days and if not cleared another 90-day time can be sought.
Monnet Ispat and Energy Ltd (MIEL), the flagship company of Monnet Group, has a sponge iron unit with a capacity of one lakh tonnes per annum (TPA).
MIEL has an integrated steel plant at Raigarh, which has a production capacity of 1.5 MTPA to produce HR (hot rolled) plates, rebars and structure profiles to cater to the rapidly growing infrastructure and construction industry.
Sajjan Jindal-led JSW Steel is in expansion mode. It has plans to raise its capacity to 45 MT by 2030 from 18 MT at present.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)