AION Capital-JSW Steel consortium agrees to pay Monnet Ispat’s small creditors
6 years, 6 months ago

AION Capital-JSW Steel consortium agrees to pay Monnet Ispat’s small creditors

Live Mint  

Mumbai: The AION Capital-JSW Steel consortium has agreed to pay small operational creditors of Monnet Ispat after the dedicated bankruptcy court observed that there is nothing for small vendors in the resolution plan and they need to keep them in mind while acquiring an asset at such an attractive valuation. The lone successful bidder agreed to set aside around ₹ 25 crore for MSME vendors, which will increase the total acquisition amount to ₹ 2,875 crore for the AION-JSW Steel consortium. “When you are getting a company for ₹ 2,850 crore whose fair market value is over ₹ 4, 000 crore then you should make at least some provision for small operational creditors,” observed the Mumbai bench of the NCLT while hearing arguments of the AION-JSW application. “You can eliminate big operational creditors that are listed companies or major corporations but you have to think about micro and small enterprises.” Fredun De Vitre, senior counsel who was appearing for the AION-JSW consortium, said that they are willing to make an allocation of ₹ 25 crore for such small operational creditors.

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History of this topic

Keep off companies under IBC, go after promoters: SBI chief asks probe agencies
5 years, 3 months ago

Keep off companies under IBC, go after promoters: SBI chief asks probe agencies

Live Mint  

Mumbai: State Bank chairman Rajnish Kumar on Tuesday said the Enforcement Directorate and other central law enforcement agencies should restrict to attaching personal assets while investigating a promoter and keep off the company which is under the insolvency process. "Any action which ED or any other central authority has to take, they can take with the existing promoters and attach …

JSW Steel, promoters acquire around 88% stake in bankrupt Monnet Ispat after NCLT approves Rs 2,875 cr bid
6 years, 4 months ago

JSW Steel, promoters acquire around 88% stake in bankrupt Monnet Ispat after NCLT approves Rs 2,875 cr bid

Firstpost  

Monnet Ispat, once one of the country’s foremost steelmakers, ran a successful coal-based sponge iron plant with an annual capacity of 1.5 million tonnes in Chhattisgrah New Delhi: JSW Steel and its promoters have acquired around 88 percent stake in the Monnet Ispat and Energy Ltd following completion of the insolvency resolution proceedings, MIEL said Tuesday. The National Company Law …

Aion Investments, JSW Steel to pay Rs 2,892 crore to pick 74.3% stake in Monnet Ispat
6 years, 5 months ago

Aion Investments, JSW Steel to pay Rs 2,892 crore to pick 74.3% stake in Monnet Ispat

Firstpost  

Mumbai: A consortium of Aion Investments – JSW Steel, which has won bid to acquire the bankrupt Monnet Ispat & Energy, will pay Rs 2,892 crore to take over the assets, as per the revised resolution plan approved by NCLT. As per the written order, the consortium will make a payment of Rs 2,457 crore to secured financial creditors of …

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