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JSW Steel pays Rs 1,550 crore to complete Asian Colour Coated deal
JSW Steel pays Rs 1,550 crore to complete Asian Colour Coated deal
JSW Steel through its subsidiary has completed the acquisition of Asian Color Coated Ispat Ltd (ACCIL) at an expense of Rs 1,550 crore on receipt of the written order of NCLT.
JSW Steel through its subsidiary has completed the acquisition of Asian Color Coated Ispat Ltd (ACCIL) at an expense of Rs 1,550 crore on receipt of the written order of NCLT. The acquisition was completed through its subsidiary Hasaud Steel Ltd (HSL) through a mix of equity and quasi-equity/debt instruments as per the resolution plan.
In its regulatory filing on Tuesday, JSW steel said "JSW Steel Coated Products Limited ("JSWSCPL"), a wholly-owned subsidiary of JSW Steel Limited, has infused Rs 1,550 crores into HSL (a wholly-owned subsidiary of JSWSCPL) through a mix of equity/ quasi equity/debt instruments as per the Resolution Plan."
Payment to creditors of ACCIL
HSL has paid Rs 1476.94 crores to certain financial creditors of ACCIL, towards the assignment of their ACCIL loans. Another Rs 73.06 crore was infused into ACCIL in the form of a loan, for onward payments to operational creditors, workmen / employees, and other financial creditors of ACCIL, in full discharge of JSWSCPL's obligations under the Resolution Plan.
Issue of Equity Shares & Reduction of Capital
With this, HSL has been issued equity shares of ACCIL by way of conversion of the loan of Rs 73.06 crores infused by it, in accordance with the Resolution Plan. Simultaneously, as provided in the Resolution Plan, the existing issued equity share capital of ACCIL comprising of 88,07,76,270 equity shares of face value Rs 10 each held by the existing shareholders are cancelled and extinguished without any payment to the shareholders in accordance with the Resolution Plan.
Accordingly, immediately upon implementation of the Resolution Plan, HSL (a stepdown wholly-owned subsidiary of the Company) holds 100% of the equity interest in ACCIL. Now, JSW Steel Colour Products reserves the right to seek such clarification and appeal in relation to any part of the Order if it deems necessary, said JSW Steel.
Last Monday, October 19, 2020, the National Company Law Tribunal (NCLT) at New Delhi had approved JSW Steel resolution plan with modification under Section 31 of the Insolvency and Bankruptcy Code, 2016. The written order in respect of the same has been received on October 26, 2020. Pursuant to the said order, the Company has completed the acquisition of ACCIL through JSWCPL.
