Indian Express reported that the committee of creditors (CoC) of Adhunik
Metaliks approved UK-based Liberty House’s resolution plan for the
insolvent company Thursday, the last day of the extended timeline for
the corporate insolvency resolution process (CIRP) for the steelmaker.
Adhunik Metaliks (AML) said “The committee of creditors at the meeting
held approved the resolution plan submitted by the Liberty House Group
Pte with a majority of 99.94%.”
There were only two resolution applicants for the debt-laden steel
manufacturing company Liberty House and Maharashtra Seamless of the DP
Jindal Group. Liberty House was already identified as the highest bidder
(H1) by the creditors, while the plan of Maharashtra Seamless was
rejected as it was offering less value than the liquidation value of the
company, the flagship of the Adhunik Group.
On Thursday, the Sanjeev Gupta-led metals and industrial group’s
resolution plan for Zion Steel, another Adhunik Group company, also got
approval from the creditors. The CoC had met on Monday and also on
Wednesday to consider approving the resolution plan submitted by Liberty
House. However, those meetings were inconclusive. Now, after the
approval of the resolution plans for both AML and Zion Steel, resolution
professional Sumit Binani will put up the plans to the Kolkata bench of
the National Company Law Tribunal (NCLT) for its approval and passing
necessary orders in this matter.
Sources said that according to the resolution plans, Liberty House would
infuse over INR 600 crore into AML and Zion Steel. Notably, for AML,
standalone debt had stood around INR 2,500 crore.
Lenders to AML are State Bank of India, Punjab National Bank, ICICI
Bank, IFCI, Punjab & Sind Bank, UCO Bank, Allahabad Bank, Bank of
Baroda, Corporation Bank and SREI Infrastructure Finance, among others.
Source : Indian Express