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After shutting down the financial capital Mumbai for a day early this week, the sudden power outage in country’s capital city Delhi has delayed NCLT’s final verdict in the two-year-old insolvency case of Asian Colour Coated Ispat.
The principal bench of Delhi NCLT, which had taken up the case online on Friday, said it will now pronounce the final verdict on Monday after a power cut due to load-shedding interrupted connections of lawyers who had logged in for the hearing in the case.
The insolvency case of Asian Colour Coated itself has gone through many twists and turns. JSW Steel, which had initially placed a bid of ₹1,200 crore for the company, revised it to ₹1,550 crore in May and the same was approved by the lenders last June. However, the promoters of Asian Colour Coated moved the NCLAT against the lenders’ decision and litigation on land issues.
The Interups factor
Even while the NCLAT cleared the litigation and paved the way for further progress, Interups, an US-based fund Interup that had not even placed an expression of interest, placed a fresh bid of ₹2,000 crore with the resolution professional of the company last June and moved the NCLT to direct lenders to consider its higher bid. In its last hearing, the NCLT announced that it will give the final verdict in the case on Friday. However, the unexpected power cut in Delhi extended the much-delayed case by another two days.
Asian Colour, which had defaulted on a ₹4,900-crore loan, has facilities close to Delhi and Mumbai. It specialises in downstream, galvanised and colour-coated products that are exported to Europe, Latin America and Africa. It has an annual capacity of 1 million tonne.
JSW Steel had already acquired two assets – Monnet Ispat and Vardhman Industries – through the Insolvency and Bankruptcy Code. It is fighting a court battle for the last three years to close the acquisition of the insolvent Bhushan Power and Steel.
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