A consortium of JSW Steel and AION Investments has paid ₹2,457 crore to the secured financial creditors of Monnet Ispat and Energy as set out in the resolution plan approved by the National Company Law Tribunal.
Monnet Ispat has also secured a loan of ₹125 crore from JSW Steel for its working capital requirements, it said in a statement on Saturday.
The company had appointed Dhakshana Moorthy Ravichandar as Executive Whole-time Director. Other board members who have taken over as non-executive directors include Seshagiri Rao MVS, Kalpesh Pankaj Kikani, Nikhil Omprakash Gahrotra and Sanjay Kumar. It accepted the resignation of Sumit Binani as a director.
Monnet Ispat, which had defaulted on its ₹11,000-crore loan, was taken over by the JSW Steel and AION Investments consortium. Monnet Ispat has allotted 21.52 crore equity shares of ₹10 each to the assenting secured and unsecured financial creditors in lieu of the conversion of a portion of the company’s admitted debt. A part of the debt has also been converted into optionally convertible preference shares of Milloret Steel, a special purpose vehicle owned by the consortium. It has issued an aggregate of 12,05,27,534 equity shares to the investors on record as of August 30. The equity shares held by the erstwhile promoters of Monnet Ispat have been extinguished, and the remaining equity share capital held by the company’s non-promoter shareholders has been reduced, it said.
The consortium company Milloret Steel has allotted 34,90,20,000 equity shares and 52,59,80,000 compulsorily convertible preference shares to its shareholders. The new promoters of Monnet Ispat will be Creixent Special Steels, JTPM Atsali and their respective existing shareholders.