The National Company Law Tribunal has approved the resolution plan of AM Mining India, a subsidiary of ArcelorMittal India, for acquiring Indian Steel Corporation for ₹897 crore.
AM Mining is a joint venture between Arcelor Mittal Luxembourg and Nippon Steel Corporation, Japan.
The Indian Steel Corporation was admitted for corporate insolvency resolution process in October 2021 after India Resurgence ARC moved against the company for a financial debt of over ₹2,700 crore.
The total consideration amount under the Resolution Plan will be ₹897 crore. Of this, secured financial creditors will get ₹810 crore, operational creditors (including workmen and statutory dues) will receive ₹12 crore and equity infusion will be of ₹75 crore, said sources.
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With an annual capacity of 6 lakh tonne per annum, Gujarat-based ISC is a steel processing company with operations spanning in cold-rolled, galvanised and colour-coated steel products
Service centre
The port-based facility specialises in manufacturing value-added steel products that cater to the automotive, construction, home appliance and general engineering sectors. With an established OEM customer base, the plant also has a service centre within its premises, said ArcelorMittal India.
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The company looks forward to implementing the recently passed resolution plan in due course.
Dilip Oommen, Executive Vice-President, ArcelorMittal, said the acquisition of Indian Steel Corporation will enhance downstream capabilities and broaden product portfolio as the company looks to capitalise on market opportunities presented by the steel industry, especially in high value-added steel production besides capturing synergies across downstream operations.