A JSW Steel entity is set to acquire National Steel and Agro Industries through the insolvency process.
J M Asset Reconstruction Company, the sole lender of National Steel and Agro after having taken over the troubled steelmaker’s debt, on Friday issued a letter of intent to JSW Steel Coated Product Pvt Ltd accepting its resolution plan, stock exchange disclosures show.
JSW Steel is believed to have offered ₹400-425 crore to acquire the company, a person with knowledge of the matter told ET.
National Steel and Agro’s resolution professional Dushyant Dave has admitted ₹2,023 crore claims, of which JMARC, the sole secured lender, has a claim of ₹1,686 crore.
The ARC had acquired National Steel and Agro’s loans from 70% of lenders by value in April 2021 in an uncontested Swiss auction. Subsequently, it acquired the balance loans in phases. It paid about 35 paise on the rupee principal to acquire the entire debt, said a person aware of the development.
JSW Steel informed stock exchanges on Friday that the committee of creditors has approved its plan. It can take possession of the company only after the bankruptcy court approves its plan.
