India's JSW Steel, AION get creditors' nod for Monnet Ispat takeover

JSW Ispat Special Products

10/04/2018 11:09

April 10 (Reuters) - Creditors of India's Monnet Ispat and
Energy Ltd  MNET.NS  have approved a joint bid https://www.bseindia.com/xml-data/corpfiling/AttachLive/25a29273-3b07-426f-90ae-85e03eb9da34.pdf
 from AION Investments and JSW Steel  JSTL.NS  to take over the
bankrupt firm, according to a regulatory filing on Tuesday.
    Monnet Ispat is among India's 12 biggest loan defaulters https://in.reuters.com/article/india-bankruptcy/bhushan-essar-steel-among-12-firms-being-moved-to-insolvency-courts-sources-idINKBN1971EQ,
 which were pushed into bankruptcy last year, as part of the
country's new bankruptcy law aimed at cutting close to $150
billion of accumulated soured loans.
    Monnet Ispat's committee of creditors approved the
resolution plan from AION Investments and JSW Steel by
favourable votes of close to 99 percent, the company said in the
stock exchange filing.
    It did not provide any details of the takeover offer.
    Monnet Ispat, which manufactures steel and is also involved
in power generation, owes banks and other creditors 104.12
billion rupees http://mofapp.nic.in:8080/economicsurvey/pdf/044-055_Chapter_03_Economic_Survey_2017-18.pdf
 ($1.6 billion), according to government data.
    Leading Indian steelmaker JSW Steel has also bid for another
bankrupt steelmaker Essar Steel India in a partnership. 
 urn:newsml:reuters.com:*:nL4N1RF426
    Creditors have so far finalised winning bidders for at least
two other bankrupt steelmakers. Tata Steel  TISC.NS  is taking
over Bhushan Steel  BSSL.NS , while Vedanta Ltd  VDAN.NS  has
won bids for Electrosteel Steels Ltd  ELES.NS . urn:newsml:reuters.com:*:nL3N1R54FW
 urn:newsml:reuters.com:*:nL3N1RD07K
    
 ($1 = 64.9875 Indian rupees)

 (Reporting by Jessica Kuruthukulangara in Bengaluru, Editing by
Sherry Jacob-Phillips)
 ((Jessica.Kuruthukulangara@thomsonreuters.com;
+91-80-6749-7142; Reuters Messaging:
Jessica.Kuruthukulangara.reuters.com@reuters.net))