A bankruptcy court has approved Jindal Saw’s application to acquire listed steel maker Sathavahana Ispat through the insolvency resolution process. Prithviraj Jindal- promoted Jindal Saw has proposed to pay ₹694 crore against the defaulting borrower’s acknowledged debt of ₹1,852 crore.
“We, therefore, hereby approve the revised Resolution Plan dated 16.12.2022 submitted by Jindal Saw,” said the Hyderabad chapter of the National Company Law Tribunal (NCLT).
The bench was led by judicial members Dr Venkata Ramakrishna Badarinath Nandula and Charan Singh.
“The resolution plan shall be binding on the Corporate Debtor, its employees, members, and creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan,” observed the tribunal in its order of March 31.
Besides Jindal Saw, six other bidders including Vedanta, Welspun Corp, Sarda Mines, Ares SSG Capital (Singapore), Khandwala Finstock and Trimex Industries had also submitted expressions of interest (EOI).
However, only Jindal Saw and Vedanta had submitted final resolution plans to acquire the company through the insolvency process.
Originally, in May 2021, lenders to Sathavahana Ispat received an anchor offer of ₹410 crore from JC Flowers ARC under a Swiss auction. Pridhvi Asset Reconstruction & Securitisation (Paras), an ARC, in partnership with Megha Engineering, gave a counter-offer of ₹531 crore. Later, JC Flowers ARC matched the counter-offer given by Paras the next day. Under a Swiss auction, the anchor bidder has the right to match the counter-offer.
Source: Economic Times