Amalgam steel's acquisition of topworth gets NCLT nod
Topworth Steel and Power Pvt Ltd by Amalgam Steel and Power Limited. The company had admitted liability of about ₹3,499 crore, whereas the successful bidder proposed to pay around ₹260 crore.
«The overall feasibility and viability of the plan stands unaltered,» the division bench presided over by Justice VG Bisht and technical member Prabhat Kumar said in its order of October 11.
«The resolution plan is not in contravention of any of the provisions of the code (Insolvency and Bankruptcy Code) and is in accordance with law. The same needs to be approved.»
Before the National Company Law Tribunal's nod to the acquisition, the lenders of Mumbai-based Topworth Steel and Power had approved the resolution plan.
Amalgam Steel and Power Limited, as per its website, is a joint venture between Atha & Misra Group.
A special purpose vehicle was incorporated to acquire Adhunik Alloys & Power Ltd and Orrisa Manganese & Minerals Limited through the National Company Law Appellate Tribunal. Originally, the committee of creditors had received 12 resolution plans, but only eight of them were legally compliant.
On October 22, 2021, the lenders approved the plan with 89.61% voting in favour of Amalgam Steel and Power.
«Operational integrated steel manufacturing plants are always in high demand among bidders when such companies get admitted under insolvency resolution process,» said Satwinder Singh, founder of Delhi-based law firm Aekom Legal.
