Shyam Metalics arm gets NCLT nod to acquire Mittal Corp
acquisition of steel maker Mittal Corp Ltd by an affiliate of the listed firm Shyam Metalics and Energy Ltd.
Resolution professional Shailendra Ajmera, who is backed by EY, had admitted Rs 1,767 crore in claims, while successful bidder Shyam Sel and Power Ltd proposed to pay Rs 351 crore.
The offer by Shyam Sel will imply a 20% recovery for all creditors. Of the total claims, the financial creditors' claim stood at Rs 1,587 crore and they would receive Rs 348.7 crore as per the approved plan.
Before the tribunal’s approval, the lenders of the company had approved the revival plan with 100% voting in favour of Shyam Sel and Power.
“It shall be binding on the corporate debtor, its employees, members, creditors, including the central government…to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the resolution plan,” said the bench presided by division bench of Kuldip Kumar Kareer and a technical member Anil Raj Chellan in its order of October 18.
In July 2022, Ajmera conducted a challenge auction among applicants to maximise value for lenders. The resolution professional received the highest offer of Rs 283 crore from Rimjhim Ispat followed by Rs 257 crore from Shyam SEL and Rs 251 crore from Jindal Stainless Ltd.
Within days of RP inviting lenders to vote on the plan in August, the National Company Law Tribunal directed the RP to halt the voting process and reinvite offers following a petition from Shaym Sel and Power.
