India’s National Company Law Tribunal (NCLT) has approved a bankruptcy resolution plan for Indian Steel Corporation (ISC) submitted by AM Mining Limited, a joint venture of ArcelorMittal, Luxembourg, and Nippon Steel Corporation, Japan, industry sources said on Tuesday, April 18.
Under the resolution plan approved by the NCLT, AM Mining would need to pay INR 8.97 billion ($109 million) to clear statutory creditors and operational creditors including workers of ISC, the sources said.
The ailing ISC has operated a port-based mill in the western state of Gujarat with 600,000 mt per year capacity for production of cold rolled coil (CRC), galvanized and color coated steel products, as well as operating a steel servicing center.
“The acquisition of ISC 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,” ArcelorMittal Nippon Steel Limited (AMNS) executive vice president Dilip Oommen said in a statement.