The consortium led by Sajjan Jindal-promoted JSW Steel and AION Capital has received the letter of intent for acquiring the stressed asset of Monnet Ispat and Energy.
The committee of creditors (CoC) of Monnet Ispat and Energy, which is going through insolvency proceedings, had on Tuesday approved the resolution plan submitted by the consortium. Incidentally, the consortium was the only bidder for the bankrupt asset of Monnet Ispat.
The consortium was declared the successful resolution applicant by the Committee of Creditors of MIEL on April 10, and received a Letter of Intent dated April 12, said JSW Steel in a statement on Thursday.
“The consortium has accepted the terms of the LoI. The closure of the transaction shall be subject to obtaining necessary regulatory approvals, including from the National Company Law Tribunal and the Competition Commission of India," JSW Steel added.
Earlier, ArcelorMittal questioned the selection of JSW Steel-led consortium as the winning bid for Monnet Ispat. Taking a swipe at JSW Steel promoter Sajjan Jindal in a tweet said: “Interesting what decision is being taken on Monnet today given it’s clear JSW runs afoul of (Section) 29A (of IBC) as they are related to the existing promoter….who is making the mockery here?"
In response, JSW Steel tweeted to say the company has gone through the rigorous scrutiny.
After the thorough examination of facts, JSW Steel is declared as qualified resolution applicant as per the Insolvency and Bankruptcy Code not only in Monnet but in other stressed accounts.