30 June 2019: The SBI-led committee of creditors of Asian Colour Coated Ispat Ltd (ACCL), which has an outstanding debt of over Rs 5,000 crore, has approved JSW Steel’s Rs 1,500-crore bid to acquire the stressed steel company. Most of the money will go to financial creditors. Top lenders of debt-ridden ACCl include the State Bank of India, Bank of Baroda, Punjab National Bank and IDBI Bank. Some other banks and financial institutions also have exposure to the company.
ACCL had filed for insolvency in July 2018 after the National Company Law Tribunal (NCLT) admitted a resolution application filed by the State Bank of India-led consortium. As per PTI, a report submitted by Resolution Profession Kuldip Bassi, who was supported by Ernst & Young, had confirmed ACCL’s admitted debt at Rs 6,500 crore. Over 80 per cent of the committee of creditors voted in favour of the JSW Group bid.
Asian Colour Coated Ispat Limited (ACCIL) has manufacturing facilities across three strategic locations in close proximity to Delhi and Mumbai and caters to markets across the Gulf, Europe, Africa, Latin and North America besides India.
The action continues unabated in the steel industry. In July 2018, JSW Steel and AION Investments Private II Limited had acquired cash-strapped Monnet Ispat and Energy Limited — one of the twelve corporate defaulters listed by the Reserve Bank of India for heavy loan defaults — through the NCLT resolution process for Rs 2,850 crore. Sajjan Jindal-led JSW Steel had reported a sharp fall of 48 per cent in consolidated net profit at Rs 1,495 crore for the fourth quarter ended March 31, 2019, due to increase in expenses.