The National Company Law Tribunal (NCLT) has given its approval for Monnet Ispat’s acquisition by the Aion Capital-JSW Steel consortium.
The winning bidders will pay Rs 25 crore to the operational creditors. The final acquisition amount will be Rs 2,875 crore.
The announcement comes a week after the two partners agreed to pay operational creditors of Monnet Ispat.
The combine was the only bidder for the distressed company, which was referred to the NCLT last year after accumulating Rs 10,000 crore in debt.
“The resolution plan submitted by the consortium of JSW Steel Limited and AION Investments Private had been earlier approved by the committee of creditors of Monnet Ispat and Energy Limited,” said Seshagiri Rao, Joint MD and Group CFO, JSW Steel.
“Today the resolution plan was approved by the Mumbai bench of the NCLT. The written order of the NCLT is awaited,” he added.
Monnet Ispat has a capacity of 1.5 million tonne per annum.
“This acquisition will be crucial in furthering our footprint in the central and eastern markets of India,” Sajjan Jindal had said in JSW Steel's annual report. The Monnet Ispat facility is located in Chhattisgarh.
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