NCLT Approves AM Mining Resolution Plan For Indian Steel Corporation
Listen to This Article
ArcelorMittal India, on Monday, said that the National Company Law Tribunal (NCLT) had approved AM Mining India’s resolution plan for Indian Steel Corporation (ISC), a Gujarat-based downstream unit. AM Mining is a subsidiary of ArcelorMittal India (AMIPL) and part of the ArcelorMittal and Nippon Steel joint venture.
In a statement, AMIPL said that it looks forward to implementing the recently passed resolution plan in due course.
The NCLT passed the order on April 13. The total amount under the resolution plan is Rs 897 crores, out of which the secured financial creditors would receive Rs 810 crores.
According to information available on the ISC website, the admitted claims of secured financial creditors as on November 2022 was around Rs 2709 crore.
Commenting on the NCLT approval, Dilip Oommen, executive vice president. ArcelorMittal, said that the acquisition would enhance downstream capabilities and broaden the product portfolio as the company looks to capitalise on market opportunities presented by the steel industry, especially in high value-added steel production.
“It will also lead to synergies across our downstream operations,” he said.
ISC is a steel processing company with operations spanning cold-rolled, galvanised, and colour-coated. It has an annual capacity of 600,000 tonnes per annum.
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, the statement read.
The ISC acquisition comes after the Uttam Galva Steels buy last year under the Insolvency and Bankruptcy Code (IBC). Uttam Galva Steels, also a downstream steel manufacturer, has its manufacturing facilities at Khopoli, with an annual capacity of 1.2 million tonnes per annum.
But the ArcelorMittal and Nippon Steel joint venture is not just expanding downstream capacities through acquisitions. At Hazira, Gujarat, ArcelorMittal Nippon Steel India (AM/NS India), plans to invest $1 billion in downstream facilities to supply to the growing automotive demand.
The investment is part of the larger $7.4 billion AM/NS India’s major expansion which includes scaling upstream capacity to 15 million tonnes at Hazira.
Rising Rates, Rising Challenges: Bankers Adapt To Serve Troubled Companies In A Changing Economic Landscape
As interest rates climb, troubled companies are facing heightened financial pressures, prompting them to seek assistance... Read more
The Elusive Nature Of Fraud Detection: Exploring The Auditor's Dilemma
In the intricate world of financial reporting, auditors serve as guardians of integrity, tasked with uncovering discrepa... Read more
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more
Transforming Financial Operations With Robotic Process Automation
Author: Ricardo Goulart ... Read more