Electrosteel becomes first of the RBI 12 to be resolved

The National Company Law Tribunal, Kolkata Bench today approved the resolution plan submitted by Vedanta Ltd. for resolving one of the RBI 12, Electrosteel Steels.

State Bank of India had initiated insolvency proceedings against Electrosteel Steels on July 21, 2017. While the 180-day deadline for Electrosteel was  around 16 January 2018, the resolution professional obtained a 90-day extension in December, 2017, pushing its deadline to around April 17, 2018.

Electrosteel had reported to the Bombay Stock Exchange that it had received  four bids in total, which appears to be one of the highest number of bids received by any of the RBI 12 companies.

Bids were received from, Renaissance Steel India Private Limited, Tata Steel Limited, Vedanta Limited and Edelweiss Alternative Asset Advisors Pte Limited acting as the investment advisor of EISAF II and EC Holdings with support of Edelweiss Asset Reconstruction Company Limited.

In a creditors meeting held on March 29, 2018, Vedanta was selected as the winning bidder. Vedanta’s resolution plans today received the NCLT’s approval.

Shardul Amarchand Mangaldas advised the resolution professional in the  matter and the team was led by Sapan Gupta, National Practice Head – Banking & Finance.

Khaitan & Co led by Partners Haigreve Khaitan, Mehul Shah and Kumar Saurabh Singh advised the winning bidder, Vedanta Limited on this transaction.