Vedanta gets NCLT nod for Electrosteel takeover

Electrosteel Steels owes lenders more than Rs13,000 crore, of which about Rs5,000 crore to State Bank of India alone. Photo: Reuters

Electrosteel Steels owes lenders more than Rs13,000 crore, of which about Rs5,000 crore to State Bank of India alone. Photo: Reuters

Kolkata: The National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan submitted by Vedanta Ltd for Electrosteel Steels Ltd.

The 270-day resolution deadline, as stipulated by the Insolvency and Bankruptcy Code, ends on Tuesday. The NCLT in an order said that the “resolution plan of corporate debtor Electrosteel Steels Ltd which is approved by the CoC with a voting share of 100 per cent under section 31 (1) of the Insolvency & Bankruptcy Code 2016” has been approved.

“The approved resolution plan shall come into force with immediate effect,” the order said. The resolution plan involved about Rs5,300 crore cash payout but has different components to it. Electrosteel Steels owes lenders more than Rs13,000 crore, of which about Rs5,000 crore to State Bank of India alone.

The Reserve Bank of India had in June last year identified 12 large corporate accounts for insolvency resolution, including that of Electrosteel Steels.

First Published: Tue, Apr 17 2018. 05 49 PM IST

Source: Livemint