BHUBANESWAR : The AION Capital-JSW Steel consortium is closer to sealing its takeover of debt-ridden Monnet Ispat, with the National Company Law Tribunal (NCLT) likely to clear resolution plan Tuesday in a deal that will increase the total acquisition amount to `2,875 crore.The Mumbai bench of the NCLT had asked the consortium to keep in minds the small vendors besides the big operational creditors while acquiring an asset at such an attractive price. “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,” it observed.
Following this, the only successful bidder agreed to set aside around `25 crore for MSME vendors, taking the total acquisition amount to `2,875 crore.With this, the consortium has now cleared all the roadblocks. “Unless somebody challenges this (the approval by NCLT) in the NCLAT on any ground, the path is clear for the consortium to complete the process of acquisition now,” said a source close to the deal.
He added the consortium is likely to get the green signal from NCLT today subject to clearance of authorities. The bankruptcy court is slated to give the final verdict Tuesday.Monnet Ispat was the first stressed asset out of the 12 large NPAs to get admitted by the NCLT for insolvency resolution on July 18.
The company owes lenders `10,000 crore, led by the State Bank of India and the committee of creditors (CoC) has agreed to take a haircut of around 75 per cent to settle the loan.JSW-Aion’s resolution plan was reportedly approved by the Monnet Ispat’s CoC with a 98.98 per cent majority vote. AION Capital holds a 70 per cent stake in the consortium while JSW Steel holds the rest.