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Edelweiss joins race for Monnet Ispat - Report

Steel News - Published on Fri, 29 Dec 2017

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Business Standard reported that Edelweiss Asset Reconstruction Company has joined the race to buy Monnet Ispat & Energy’s assets after JSW Steel presented a resolution plan asking lenders to take a 72% haircut. According to a source close to the development, Edelweiss has already submitted its expression of interest and would be presenting a resolution plan in the coming days.

The last date for Monnet Ispat will be extended as lenders are not happy with JSW Steel’s offer.

Monnet Ispat plans to file an application for a 90-day extension before the National Company Law Tribunal. Monnet Ispat’s 180 days would be completed on January 13 and 270 days on April 4.

Many companies, including Tata Steel and private equity players, had evinced interest in Monnet Ispat but, ultimately, JSW-AION submitted the bid. Sources said the committee of creditors was evaluating the JSW-AION bid.

This is the third time that Monnet Ispat has been put on the block; twice through the strategic debt restructuring (SDR) route and currently under the IBC. In the last SDR round, JSW Steel had emerged as the sole bidder, but lenders had found the haircut too steep. The bid entailed a debt takeover of around INR 2,222 crore under the previous scheme.

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Posted By : Rabi Wangkhem on Fri, 29 Dec 2017
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