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IFCI moves NCLAT against AION-JSW bid for Monnet Ispat

Steel News - Published on Wed, 16 Jan 2019

Image Source: VCCircle
Mint reported that IFCI Ltd, the erstwhile Industrial Finance Corp of India, has challenged the AION Capital-JSW Steel Ltd resolution plan for Monnet Ispat and Energy Ltd, which treats IFCI’s secured loan as unsecured debt, before the National Company Law Appellate Tribunal (NCLAT). The division bench of justices S.J. Mukhopadhaya and Bansi Lal Bhat in its ruling on 10 January “One of the grounds taken by the appellant is that the resolution plan discriminates between Monnet Ispat’s financial creditors and, thereby, is against the ratio laid down by this appellate tribunal in the Binani Industries Ltd vs Bank of Baroda case.”

The NCLAT has directed the resolution applicants (AION-JSW) to either modify the financial matrix of the resolution plan or to argue on its legality at the next hearing. It will next hear the matter on 29 January.

Monnet Ispat owes around INR 158 crore to IFCI.

Last April, Monnet Ispat’s committee of creditors (CoC) had approved the resolution plan to revive the distressed steel manufacturer. Subsequently, the resolution professional (RP) had submitted the AION-JSW resolution plan to the National Company Law Tribunal (NCLT) for approval. In July 2018, the tribunal had approved the INR 2,875-crore plan by the AION-JSW Steel consortium, which was the sole bidder for the assets. Monnet Ispat’s debt stood at INR 11,000 crore.

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Posted By : Ratan Singh on Wed, 16 Jan 2019
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