<p>UK-based investor Nithia Capital announced that it has completed the acquisition of Crest Steel and Power Pvt Ltd for a total consideration of over INR 600 crore in NCLT’s IBC resolution process. This acquisition was completed in partnership with Amalgam Steel Private Limited with Nithia retaining majority control of the partnership. Nithia Capital Founder & CEO Mr Jai Saraf said "The acquisition is an important and strategic step for Nithia and our second steel investment in India. With our newly forged partnership with Amalgam Steel, we believe CREST will soon achieve a successful turnaround, and is well set on its planned growth programme. This transaction is further proof of the success of the Insolvency and Bankruptcy Code.”</p><p>Established in May 2004, Crest is engaged in the manufacturing of iron and steel with products such as pellets, sponge iron, billets, rebar & wire rod etc. Located in Durg in Chhattisgarh, Crest is an integrated steel plant with a current sponge iron capacity of 225 KT and steel billet capacity of 80 KT. The firm has over 400 acres of land and extensive room for brownfield expansion. </p><p>Crest was admitted by a Mumbai bench of the NCLT on a plea by its operational creditor Indiabulls Real Estate Company Pvt Ltd, which claimed that Crest sought to terminate the Leave and Licence Agreement within the agreed lock-in period. Indiabulls claimed Crest was liable to tender license fees for the unexpired period, and hence dragged it to the insolvency court to claim the fees. The total debt of Crest was around INR 3,652 cror, of which about 54% was owned by government lenders SBI & Punjab National Bank. The Committee of Creditors including 12 financial creditors such as JM Financial Asset Reconstruction Company Pvt Ltd had approved Nithia Capital’s resolution in March 2020.</p><p>Jharkhand-based Amalgam Steel is a joint venture between Atha Group & Misra Group and is a special purpose vehicle was incorporated to acquire Adhunik Alloys & Power limited & Orrisa Manganese & Minerals Limited through NCLAT. Together the two groups have a combined iron ore mining capacity of 6 million tonne, iron ore pellet making capacity in excess of 4 million tonne and sponge iron and steel billet making capacity.</p><p>Nithia Capital is a London-based alternative investment manager and advisory firm led and founded by M Jai Saraf, a former finance director of Mr Lakshmi Mittal-led earstwihle Ispat International. At Ispat, Saraf was involved in the acquisition and turnaround of assets. He left Ispat in 1999, his LinkedIn profile shows. Thereafter, he worked with Turkish and Kazakhstan-focused companies for a decade before launching Nithia Capital in 2010. Nithia Capital specialises in turning around underperforming steel units. It completed its first acquisition under the bankruptcy process, by buying alongside US-based CarVal Investors, two units of Uttam Galva Steels Ltd for INR 2,000 crore.</p>
<p>UK-based investor Nithia Capital announced that it has completed the acquisition of Crest Steel and Power Pvt Ltd for a total consideration of over INR 600 crore in NCLT’s IBC resolution process. This acquisition was completed in partnership with Amalgam Steel Private Limited with Nithia retaining majority control of the partnership. Nithia Capital Founder & CEO Mr Jai Saraf said "The acquisition is an important and strategic step for Nithia and our second steel investment in India. With our newly forged partnership with Amalgam Steel, we believe CREST will soon achieve a successful turnaround, and is well set on its planned growth programme. This transaction is further proof of the success of the Insolvency and Bankruptcy Code.”</p><p>Established in May 2004, Crest is engaged in the manufacturing of iron and steel with products such as pellets, sponge iron, billets, rebar & wire rod etc. Located in Durg in Chhattisgarh, Crest is an integrated steel plant with a current sponge iron capacity of 225 KT and steel billet capacity of 80 KT. The firm has over 400 acres of land and extensive room for brownfield expansion. </p><p>Crest was admitted by a Mumbai bench of the NCLT on a plea by its operational creditor Indiabulls Real Estate Company Pvt Ltd, which claimed that Crest sought to terminate the Leave and Licence Agreement within the agreed lock-in period. Indiabulls claimed Crest was liable to tender license fees for the unexpired period, and hence dragged it to the insolvency court to claim the fees. The total debt of Crest was around INR 3,652 cror, of which about 54% was owned by government lenders SBI & Punjab National Bank. The Committee of Creditors including 12 financial creditors such as JM Financial Asset Reconstruction Company Pvt Ltd had approved Nithia Capital’s resolution in March 2020.</p><p>Jharkhand-based Amalgam Steel is a joint venture between Atha Group & Misra Group and is a special purpose vehicle was incorporated to acquire Adhunik Alloys & Power limited & Orrisa Manganese & Minerals Limited through NCLAT. Together the two groups have a combined iron ore mining capacity of 6 million tonne, iron ore pellet making capacity in excess of 4 million tonne and sponge iron and steel billet making capacity.</p><p>Nithia Capital is a London-based alternative investment manager and advisory firm led and founded by M Jai Saraf, a former finance director of Mr Lakshmi Mittal-led earstwihle Ispat International. At Ispat, Saraf was involved in the acquisition and turnaround of assets. He left Ispat in 1999, his LinkedIn profile shows. Thereafter, he worked with Turkish and Kazakhstan-focused companies for a decade before launching Nithia Capital in 2010. Nithia Capital specialises in turning around underperforming steel units. It completed its first acquisition under the bankruptcy process, by buying alongside US-based CarVal Investors, two units of Uttam Galva Steels Ltd for INR 2,000 crore.</p>
