The Committee of Creditors of Adunik Metaliks have approved the resolution plan submitted by Liberty House, a part of Sanjeev Gupta’s global GFG Alliance. A formal letter in this regard is expected to be sent by the CoC soon.
“We will be completing the acquisition of Odisha-based Adunik Metaliks in two months after receiving communication from the company's CoC,” said company sources.
Liberty House will pay ₹400-500 crore upfront cash for Adunik Metaliks and its subsidiary Zion Steel, which together owe about ₹2,700 crore to lenders, including SBI, Punjab National Bank, ICICI Bank, IFCI, Punjab & Sind Bank, UCO Bank, Allahabad Bank, Bank of Baroda, Corporation Bank and Srei Infrastructure Finance.
As many as 18 financial creditors have submitted claims of over ₹5,380 crore from the entire Group including Orissa Manganese & Steel, which is under an independent insolvency process.
The company was admitted under the Insolvency and Bankruptcy Code by the Kolkata Bench of the National Company Law Tribunal in August 2017. While Sumit Binani was appointed as the resolution professional, Grant Thornton was named the process adviser.
The company's integrated steel plant at Chadrihariharpur near Rourkela in Odisha is shut for want of power supply.
With less than one million tonne per annum, the plant manufactures ferro alloys, billets, bars and rounds and its customers include leading OEMs (Original Equipment Manufacturers), including Tata Motors, M&M, Ashok Leyland, Ramakrishna Forging, JMT Auto and Amtek Auto.
Sanjeev Gupta, Executive Chairman, GFG, said Adhunik’s integrated operations and supply linkages to downstream industry, especially to Amtek Auto, which was also recently approved for acquisition by Liberty House, will enable the Group to build a value chain progressively.
Earlier this year, Liberty’s resolution plan for Amtek Auto was also passed by lenders with over 94 per cent majority. Amtek Auto is a leading tier one machining, forging and casting supplier to OEM’s in the auto sector with a large footprint in India and plants in Japan, Thailand and Spain.
Liberty, which plans to invest $5 billion in India, is also in the race to acquire the stressed assets of Bhushan Power & Steel, ABG Shipyard, Castex Technologies, Metalyst Forgings and Amtek Ring Gear.