JSW Steel through its wholly owned subsidiary has infused ₹1,550 crore to complete the acquisition of Asian Colour Coated Ispat on receipt of written order of NCLT on Tuesday.
JSW Steel Colour Products has infused ₹1,550 crore into its subsidiary Hasaud Steel Ltd (HSL) through a mix of equity and quasi-equity/debt instruments as per the resolution plan.
HSL, in turn, has paid ₹1,477 crore to certain financial creditors of Asian Colour Coated, towards assignment of its loans. Another ₹73 crore was extended as loan to Asian Colour Coated for onward payments to operational creditors, workmen/employees, and other financial creditors.
Maximisation of value must be seen within the time limit, rules NCLTAsian Colour Coated lenders will be able to recover 21 per cent of ₹7,123-cr debt
With this JSW Colour Products has fully discharge its obligations under the resolution plan.
Following this, HSL has been issued equity shares of Asian Colour Coated by way of conversion of the loan of ₹73 crore infused by it.
Last Monday, NCLT had approved JSW Steel resolution plan with modification. The execution of the resolution plan was delayed due to uncertainty on the changes made by NCLT. The final written order of NCLT cleared the uncertainty on the modification made and paved the way for execution of the resolution plan.
Simultaneously, as provided in the resolution plan, the existing equity share capital of Asian Colour Coated comprising of 88,07,76,270 equity shares of face value ₹10 each held by the existing shareholders were cancelled and extinguished without any payment to the shareholders.
Accordingly, immediately upon implementation of the Resolution Plan, HSL will hold 100 per cent of the equity interest in ACCIL.
Now, JSW Steel Colour Products reserves the right to seek such clarification and appeal in relation to any part of the Order if it deems necessary, said JSW Steel.