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.
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.
“…The committee of creditors at the meeting held today approved the resolution plan submitted by the Liberty House Group Pte with a majority of 99.94 per cent,” Adhunik Metaliks (AML) said.
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 Rs 600 crore into the two companies — AML and Zion Steel. Notably, for AML, standalone debt had stood around Rs 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. —FE
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