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Vardhman Industries to delist - JSW Steel

Steel News - Published on Fri, 21 Dec 2018

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JSW Steel informed BSE that the National Company Law Tribunal New Delhi has issued its written order dated 19.12.2018, approving the resolution plan submitted by JSWSL, as approved by the Committee of Creditors of Vardhman Industries Limited, a company undergoing the Corporate Insolvency Resolution Process, pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016 and the regulations made thereunder. As per the terms of approved Resolution Plan, JSWSL shall, infuse its commitment of INR 63.5 crores in VIL through equity shares and/or debt within a period of 30 days from date of the NCLT Order or such other earlier date as intimated by VIL to the stock exchanges. The financial creditors shall receive a total consideration of INR 62.5 crores and the operational creditors shall receive an aggregate consideration of INR 1 crore for the settlement of the existing debt of VIL.”

JSW added “As per the Resolution Plan, VIL shall be delisted in accordance with Regulation 3(3)(a) of the SEBI (Delisting of Equity Shares) Regulations, 2009 (as amended from time to time) and as per the specific procedure laid down under the resolution plan submitted by JSWSL and approved by the Hon'ble NCLT. Since the liquidation value payable to the existing shareholders of VIL as determined under regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 after paying off dues in the order of priority as defined under section 53 of the Insolvency and Bankruptcy Code, 2016 is nil, the entire existing shareholding of VIL shall stand reduced to nil by way of a capital reduction with effect from the Effective Date.”

Also, as per the approved Resolution Plan, JSWSL shall be classified as the ’promoter’ of VIL, and the existing promoters / promoter group shall be de-classified as ’promoters / promoter group’ of the Company.

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Posted By : Sanju Moirangthem on Fri, 21 Dec 2018
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