The Telegraph reported that Kolkata based pig iron, billet & pellet producer Ramsarup Industries Limited, which has been lying closed for the last 10 years, will be revived and resume operations under new owners, following a bankruptcy resolution process. The report quoted sources as saying that “The Company’s takeover by Shyam Metalics & Energy Limited has been approved by the Indian Supreme Court and Ramsarup's operations will resume following a fresh infusion of capital.”Ramsarup is one of the rare instances under India’s Insolvency & Bankruptcy Code, 2016 where the corporate entity itself approached the National Company Law Tribunal to initiate the resolution process as it was unable to pay its dues to the creditors. By the time CIRP was initiated on 8 January 2018, a change took place in the year-old law, barring the promoters of defaulting companies to come up with a resolution plan under section 29A of IBC. With promoter Mr Asish Jhunjhunwala out of contention, a consortium of Shyam Sel & Power Ltd and SS Natural Resources Pvt Ltd, part of Shyam Metaliks Group, was declared a successful resolution applicant in September 2019. INR 351 crore upfront payments translated to a 94% haircut for the financial creditors who had an admitted claim of INR 5,853.09 crore in Ramsarup. The plan was approved with a 74.4% majority by the committee of creditors. However, eight appeals were filed before the National Company Law Appellate Tribunal which was dismissed only in March 2021. Soon thereafter an asset reconstruction company objected to it and appealed again before the NCLT seeking liquidation of Ramsarup. The appeal was subsequently rejected by the NCLT, NCLAT and finally the Supreme Court, paving the way for the revival of the sick enterprise. Mr NG Khaitan and Mr Sounak Mitra of solicitor firm Khaitan & Co assisted Shyam Metaliks all along.Ramsarup Industries has steelmaking facilities in the eastern state of West Bengal, which include a blast furnace, a pellet plant, pig iron and billet plants, along with a dedicated railway siding. The principal unit of Ramsarup is located on a 350-acre plot in Kharagpur. It has a blast furnace, pellet plant, pig iron and billet plant apart from a railway siding. It also has a wire rope unit in Durgapur and facilities in Kalyani and Shyamnagar.The acquisition will propel Shyam Metaliks, which came out with a successful IPO in 2021, expand its manufacturing base. The company now has two principal units in Jamuria and Sambalpur, manufacturing pellet, billet, rebar and pig iron.
The Telegraph reported that Kolkata based pig iron, billet & pellet producer Ramsarup Industries Limited, which has been lying closed for the last 10 years, will be revived and resume operations under new owners, following a bankruptcy resolution process. The report quoted sources as saying that “The Company’s takeover by Shyam Metalics & Energy Limited has been approved by the Indian Supreme Court and Ramsarup's operations will resume following a fresh infusion of capital.”Ramsarup is one of the rare instances under India’s Insolvency & Bankruptcy Code, 2016 where the corporate entity itself approached the National Company Law Tribunal to initiate the resolution process as it was unable to pay its dues to the creditors. By the time CIRP was initiated on 8 January 2018, a change took place in the year-old law, barring the promoters of defaulting companies to come up with a resolution plan under section 29A of IBC. With promoter Mr Asish Jhunjhunwala out of contention, a consortium of Shyam Sel & Power Ltd and SS Natural Resources Pvt Ltd, part of Shyam Metaliks Group, was declared a successful resolution applicant in September 2019. INR 351 crore upfront payments translated to a 94% haircut for the financial creditors who had an admitted claim of INR 5,853.09 crore in Ramsarup. The plan was approved with a 74.4% majority by the committee of creditors. However, eight appeals were filed before the National Company Law Appellate Tribunal which was dismissed only in March 2021. Soon thereafter an asset reconstruction company objected to it and appealed again before the NCLT seeking liquidation of Ramsarup. The appeal was subsequently rejected by the NCLT, NCLAT and finally the Supreme Court, paving the way for the revival of the sick enterprise. Mr NG Khaitan and Mr Sounak Mitra of solicitor firm Khaitan & Co assisted Shyam Metaliks all along.Ramsarup Industries has steelmaking facilities in the eastern state of West Bengal, which include a blast furnace, a pellet plant, pig iron and billet plants, along with a dedicated railway siding. The principal unit of Ramsarup is located on a 350-acre plot in Kharagpur. It has a blast furnace, pellet plant, pig iron and billet plant apart from a railway siding. It also has a wire rope unit in Durgapur and facilities in Kalyani and Shyamnagar.The acquisition will propel Shyam Metaliks, which came out with a successful IPO in 2021, expand its manufacturing base. The company now has two principal units in Jamuria and Sambalpur, manufacturing pellet, billet, rebar and pig iron.
