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JSW Steel Awaiting Tribunal Nod to Implement Resolution Plan for ACCIL

Steel News - Published on Fri, 31 Jul 2020

Image Source: JSW Steel ACCIL
Financial Express reported that JSW Steel has informed the National Company Law Tribunal that it was only awaiting approval from the tribunal to implement its INR 1,550 crore resolution plan for Asian Colour Coated Ispat. JSW said it is also in the possession of a commitment letter from the Deutsche Bank for an amount upto INR 1,650 crore for the said acquisition. JSW also cited a June 15 filing made by the company with the US Securities Exchange Commission in which, in relation to their ACCIL proposal. JSW said that the information memorandum it had submitted in conformity with Sebi regulations was confidential and meant to provide investors with enough caution while investing in the group. By approaching NCLT, Interups was only trying to mislead the tribunal using such documents and information which were part of the statement in the risk factor of the information memorandum.

The NCLT was hearing a petition by the US-based Interups that, in a petition last month, had urged the NCLT to direct the resolution professional to allow it submit a resolution plan for the firm for which lenders had last year chosen a JSW Group company as the preferred bidder. Interups had said that there is also no guarantee that the registrant will be able to arrange monies and the transaction will consummate. Interups had on June 12, 2020, expressed its willingness to bid which would meet the twin fold test of maximisation of value and viability and feasibility for ACCIL. It also sent a follow-up letter on July 8, but the RP denied accepting the offer, stating that the resolution process for the company was not yet over.

Interups’ bid is in excess of INR 2,000 crore. In its application to the NCLT, the company also urged the NCLT to direct the RP to put its bid for voting by the Committee of Creditors and direct the RP to allow it to provide access to the data room and other information/documents with respect to ACCIL so as to complete due diligence.

ACCIL was admitted for resolution on July 20, 2018, on an application by State Bank of India. In June, 2019 lenders approved JSW Group’s bid for the company.

Financial Express

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Posted By : Yogender Pancholi on Fri, 31 Jul 2020
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