Excelsior Correspondent
JAMMU, Apr 8: Vedanta’s ESL Steel, Rimjhim Ispat, Shyam Metallics and Maithan Alloys were among the other bidders in the race for the Kolkata-based company.
As per the resolution plan, Rs 515 crore will be offered to Rohit Ferro Tech’s financial creditors, Rs 164 crore will be infused as equity capital in the company, and about Rs 100 crore will be provided to trader creditors, employees, and for the cost of running the insolvency process
Tata Steel Mining is set to acquire Rohit Ferro-Tech with the Kolkata bench of National Company Law Tribunal (NCLT) on Thursday approving its Rs 780-crore resolution plan for the bankrupt ferroalloy manufacturer under the Insolvency and Bankruptcy Code (IBC).
Vedanta’s ESL Steel, Rimjhim Ispat, Shyam Metallics, and Maithan Alloys were among the other bidders in the race for the Kolkata-based company.
Tata Steel Mining, a wholly-owned subsidiary of Tata Steel, will implement the resolution plan within 60 days of receiving NCLT approval, as per the terms of the plan.
Rohit Ferro-Tech’s resolution professional (RP) Supriyo Kumar Chaudhari, who is backed by BDO, had admitted Rs 3,901 crore claims from financial creditors. The offer from Tata will equate to a recovery of 13% for lenders.
The RP informed the stock exchanges on Thursday that the existing equity shares of the company stand delisted from the effective date of the resolution plan. He also informed the exchange that the entire paid-up capital of the company is extinguished as per the resolution plan.
Earlier in the day, the adjudicating authority had orally pronounced an order approving Tata Steel Mining’s plan.
Most of the verified lenders of Rohit Ferro-Tech had voted in favour of Tata’s plan in the first week of June last year.
Rohit Ferro-Tech has a steel and ferroalloy manufacturing unit in Bishnupur in West Bengal. In 2018, Bimnipal Steel, a Tata group company, had acquired Bhushan Steel under the bankruptcy route, offering around Rs 35,000 crore to financial creditors.
Follow our WhatsApp channel
