Economic Times, citing two people aware of the development, has reported that Jindal Stainless Steel has emerged as the highest bidder for distressed steel company Indore based Mittal Corp that is undergoing insolvency proceedings. The sources are quoted as saying that “Jindal Stainless Steel made the highest offer of INR 250 crore as upfront cash payment among the six companies that submitted a firm bid. The five other companies Rimjhim Ispat Ltd, Shyam Steel & Power, Saarloha Advanced Material Pvt Ltd, Kalyan Toll Infrastructure and Trishakti Power Pvt Ltd had submitted firm bids, but the offers from the five firms were above INR 120 crore but below INR 200 crore.” EY backed Resolution Professional Mr Shailendra Ajmera had earlier received nearly 30 Expressions of Interest for the steel company. These include Eol's from Vedanta, Welspun, Synergy Metal & Mining Fund and Ares SSG capital backed Assets Care & Reconstruction Company. Mittal Corp, which has two steel making units, is an established manufacturer of stainless steel rebars & has verified claims of INR 1,587 crore. The offer from the highest bidder translates to a recovery of 16% for lenders Punjab National Bank, State Bank of India. In 2016, lenders attempted to sell the company to a strategic buyer by converting its debt into 51% equity under the then prevailing Strategic Debt Restructuring scheme approved by the Reserve Bank of India. However, the account deteriorated, and lenders were unable to find any buyer. It was subsequently admitted to NCLT following a petition from PNB. If the deal is concluded, it would be the first acquisition by Jindal Stainless Steel under the Insolvency and Bankruptcy Code.
Economic Times, citing two people aware of the development, has reported that Jindal Stainless Steel has emerged as the highest bidder for distressed steel company Indore based Mittal Corp that is undergoing insolvency proceedings. The sources are quoted as saying that “Jindal Stainless Steel made the highest offer of INR 250 crore as upfront cash payment among the six companies that submitted a firm bid. The five other companies Rimjhim Ispat Ltd, Shyam Steel & Power, Saarloha Advanced Material Pvt Ltd, Kalyan Toll Infrastructure and Trishakti Power Pvt Ltd had submitted firm bids, but the offers from the five firms were above INR 120 crore but below INR 200 crore.” EY backed Resolution Professional Mr Shailendra Ajmera had earlier received nearly 30 Expressions of Interest for the steel company. These include Eol's from Vedanta, Welspun, Synergy Metal & Mining Fund and Ares SSG capital backed Assets Care & Reconstruction Company. Mittal Corp, which has two steel making units, is an established manufacturer of stainless steel rebars & has verified claims of INR 1,587 crore. The offer from the highest bidder translates to a recovery of 16% for lenders Punjab National Bank, State Bank of India. In 2016, lenders attempted to sell the company to a strategic buyer by converting its debt into 51% equity under the then prevailing Strategic Debt Restructuring scheme approved by the Reserve Bank of India. However, the account deteriorated, and lenders were unable to find any buyer. It was subsequently admitted to NCLT following a petition from PNB. If the deal is concluded, it would be the first acquisition by Jindal Stainless Steel under the Insolvency and Bankruptcy Code.
