MUMBAI, Jan 31:Pursuant to the order dated January 30, 2020 of National Company Law Tribunal Cuttack, Vedanta Limited is implementing the approved Resolution Plan for Ferro Alloys Corporation Limited (FACOR).
The consideration payable for the acquisition of FACOR on debt and cash free basis under the approved Resolution Plan was Rs 10 Crores as well as equivalent of cash balance in FACOR’s subsidiary, FACOR Power Limited (FPL) as Upfront Payment and zero coupon, secured and unlisted Non-Convertible Debentures of aggregate face value of Rs 270 Crores to the Financial Creditors payable equally over 4 years commencing March 2021.
FACOR is a company in the business of producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 72,000 TPA, two operational Chrome mines and 100 MW of Captive Power Plant through its subsidiary, FPL.
The chrome plant and the mines are located in Orissa. The turnover in FY 2019 was Rs 580 crore.
The acquisition would complement the Company’s existing steel business as the vertical integration of ferro manufacturing capabilities has the potential to generate significant efficiencies.
(UNI)
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