The resolution plan for Monnet Ispat Ltd., proposed by joint bidders JSW Steel Ltd. and Aion Capital Partners Ltd., is said to have been accepted by the Committee of Creditors, two people aware of the development told BloombergQuint on the condition of anonymity.
Post the implementation of the resolution plan, JSW-Aion will hold 75 percent stake in the company. Lenders will hold 18.75 percent and the incumbent promoter group, 3.16 percent. Currently, the promoter group holds 25.27 percent and financial institutions hold a 50.10 percent stake. The rest is with other public shareholders.
JSW-Aion’s resolution plan also proposes transfer of Monnet Ispat’s non-core assets into a new company to be sold later. Some of the assets like the company’s Raipur unit, Hahahaddhi iron ore mine, investment in Orissa Sponge Iron & Steel Ltd., corporate office, coal washery at Patherdih and Angul along with non-current investments are among those assets that may be divested to a new company, which will be sold at fair market value at a later stage. The Gaitra and Guma-Pausari limestone mine is proposed to be continued for the benefit of JSW-Aion.
While the Committee of Creditors has accepted the proposal, lawyers are expected to vet it in the next two weeks, post which the committee will approve it, people mentioned above said. The plan will then be submitted to the National Company Law Tribunal for approval. BloombergQuint’s email seeking comments from JSW Steel, Aion Capital, SBI and the resolution professional remain unanswered.
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