The Committee of Creditors of Monnet Ispat and Energy has approved a joint bid by Aion Investments and JSW Steel to take over the company which is facing insolvency proceedings in NCLT.
Without revealing details on the bid offer, Monnet Ispat in a statement on Tuesday said the committee has approved the resolution plan submitted by Aion Investments and JSW Steel by 98.97 per cent favourable voting through the e-voting process.
Aion Capital holds a 70 per cent stake in the consortium and JSW Steel the rest.
Monnet Ispat, which manufactures steel and is into power generation, owes banks and other creditors ₹10,000 crore.
Creditors have agreed to take a haircut and settle the loan by accepting ₹3,750 crore, sources said.
The corporate insolvency resolution process against Monnet Ispat was initiated on July 18, 2017, and the process has to be completed before April 13.
The company owns an integrated steel plant of 1.5 million tonne per annum along with associated facilities, including sponge iron plant, pellet plant, sinter plant and a captive power plant in Chhattisgarh.
It also owns coal beneficiation facilities in Chhattisgarh and Odisha. The RBI’s move to find resolution for bad debt pile through the newly introduced Insolvency and Bankruptcy Code is catching pace with creditors so far finalising winning bidders for two large stressed asset.
Creditors recently approved Tata Steel as the winning bidder for Bhushan Steel, while Vedanta has bagged Electrosteel Steels. However, the deals have to ratified by the NCLT.