ET: Asian Colour Coated Ispat resolution professional seeks bid deadline extension

9 April 2019: The resolution professional (RP) of Asian Colour Coated Ispat (ACCIL) has petitioned the Delhi bench of National Company Law Tribunal (NCLT) seeking an extension of the bid deadline for the asset even as the company received a lone bid from JSW Steel last month.

The extension is being sought a month after the bid deadline expired on March 8, to accommodate the interests of TPG Capital, Kotak Mahindra Bank and Blackstone-backed International Asset Reconstruction Company (IARC). The said players have shown fresh interest in the asset and are likely to bid if NCLT allows the extension, said two people aware of the development. A hearing is scheduled to take place on April 10.

ACCIL owes Rs 5,000 crore to lenders whereas JSW Steel has offered Rs 1,200 crore for the asset that includes Rs 800 crore for secured lenders and Rs 400 crore for unsecured lenders. Accepting this bid will lead to the creditors taking a 76% haircut which is why the RP and CoC may want to apply for an extension and go for a fresh round of bidding, one of the people said. The 270-day deadline for the company’s resolution expires on April 16.

To be sure, out of the three players, only Kotak Mahindra Bank had submitted an initial expression of interest (EoI). The other two have shown fresh interest in the company; this could raise a concern as when a second round of bids were being called for Essar Steel, only the players that had submitted EoIs were allowed to bid.

A senior JSW Steel official said that the company has no information about the extension for the bid deadline “but for any asset under resolution in IBC, processes laid down need to be followed as such extensions when they take place a month after the bid deadline would be challenged on multiple levels surpassing the 270-day deadline.”

TPG Capital and the RP Kuldip Kumar Bassi declined to comment. Mails sent to Kotak Mahindra Bank and IARC did not elicit a response till the time of going to press.

ACCIL has a 3 lakh tonnes capacity in making cold rolled, galvanised and colour-coated steel products. ArcelorMittal had also shown interest in the company but has refrained from bidding until the acquisition of Essar Steel gets through, said a source.

The Economic Times reported



Categories: General News, India Bankruptcy

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