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Vedanta gets NCLT nod for Electrosteel takeover

twitter-logo PTI        Last Updated: April 17, 2018  | 17:42 IST

Kolkata, Apr 17 (PTI) The National Company Law Tribunal today approved the resolution plan submitted by Vedanta Ltd for Electrosteel Steels Ltd.

The 270-day resolution deadline, as stipulated by the Insolvency and Bankruptcy Code, ends today.

The NCLT in an order said that the "resolution plan of corporate debtor Electrosteel Steels Ltd which is approved by the CoC with a voting share of 100 per cent under section 31 (1) of the Insolvency & Bankruptcy Code 2016" has been approved.

"The approved resolution plan shall come into force with immediate effect," the order said.

The resolution plan involved about Rs 5,300 crore cash payout but has different components to it.

Electrosteel Steels owes lenders more than Rs 13,000 crore, of which about Rs 5,000 crore to State Bank of India alone.

The Reserve Bank of India had in June last year identified 12 large corporate accounts for insolvency resolution, including that of Electrosteel Steels. PTI

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