Monnet Ispat gets extension of 90 days to complete insolvency resolution process
Economic Times reported that the Mumbai bench of NCLT on Tuesday granted the resolution professional of debt ridden steel company Monnet Ispat and Energy an extension of 90 days to complete its insolvency resolution process as the initial 180 days were to expire on January 13. The extension will give the resolution practitioner and lenders more time to a consortium of Aion capital Partners and JSW Steel on the terms of the had emerged as the sole bidder for Monnet.
According to an earlier ET report, the plan entailed paying INR 2,500 crore to lenders and an equity infusion of INR 1,000 crore, backed by a letter of comfort by ICICI Bank ensuring financial help to the bidder. However, with the company owing banks more than INR 10,000 crore, the haircut was almost reaching 75% making lenders consider whether to open the floor for another round of bids.
According to media reports, Edelweiss Asset Reconstruction Company had stepped in the game later on after the final date for accepting bids had passed, and has already submitted an expression of interest.
People aware of the matter, however said that it is unlikely that more bids will be coming in due to the small window of time available. The 90 days will expire on April 4.
Source : Economic Times