NCLT Mumbai clears Resolution Plan of Arcelor Mittal subsidiary for Indian Steel Corporation
The company was admitted into the Corporate Insolvency Resolution Process in 2021
The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved the Resolution Plan (RP) submitted by AM Mining India Pvt Ltd, a subsidiary of Arcelor Mittal, for Indian Steel Corporation (ISC).
In the India Resurgence ARC Pvt Ltd vs Indian Steel Corporation Ltd case, the order was passed recently by a division bench of Kuldup Kareer (judicial member) and Shyam Babu Gautam (technical member).
Indian Steel had incurred a financial debt of over Rs.2,700 crores. In October 2021, on an application by India Resurgence, NCLT initiated the Corporate Insolvency Resolution Process (CIRP) against Indian Steel.
After six meetings, in April 2022, the Committee of Creditors approved the RP of AM Mining (a joint venture between Arcelor Mittal Luxembourg and Nippon Steel Corporation, Japan), by a vote of 100 percent.
As on March 31, 2021, its authorized share capital was Rs.2,400 crores and its paid-up share capital was Rs.790.19 crores. As certified by its statutory auditor, its net worth was Rs.2,425.71 crores.
The total consideration amount under the RP was Rs.897 crores, out of which the secured financial creditors would receive Rs.810 crores, operational creditors (including workmen and statutory dues) Rs.12 crores, and equity infusion Rs.75 crores.
Senior advocate Ravi Kadam with advocates Meghna Rajadhyaksha, Kriti Kalyani, and Harit Lakhani briefed from Shardul Amarchand Mangaldas & Co appeared for AM Mining.
The CoC was represented By Senior Advocate Soli Cooper with Advocates Shahezad Kazi, Tripti Sharma, and Utkarsh Trivedi briefed by S&R Associates.