L&L Partners acted for ArcelorMittal Nippon Steel acquisition of a coal based power plant in Orissa from Essar Power
L&L Partners recently acted for ArcelorMittal Nippon Steel India Limited (formerly known as Essar Steel India Limited) (AMNSI) in the acquisition of a 30 x 4 MW coal based power plant in Orissa from Essar Power (Orissa) Limited (EPOL), an Essar group company.
The power plant was acquired by way of a public auction under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI) in an action undertaken by EPOL's lenders Edelweiss Asset Reconstruction Company Limited (EARC).
This transaction was critical to the client as the power plant was a crucial part of the production ecosystem AMNSI's steel plant. It was a steady source of power for both the steel plant in Hazira as well as the pelletization plant at Orissa.
The total deal size was approximately Rs. 450 crores.
The team at L&L Partners assisted the client with all aspects of the transaction including evaluation of routes, structure, assisting with participation in the auction process and finalizing the transaction documents.
The team also assisted the client in developing the handover process and ensuring that proper strategy is in place for migration of operations from Essar to AMNSI. EPOL and Essar Power Limited had filed an application before the Debt Recovery Tribunal and a writ petition before the High Court of Bombay in respect of the public auction and the team advised the client on its litigation strategy.