India’s JSW Limited on Tuesday, October 27, formally completed the acquisition of Asian Color Coated Ispat Limited (ACCIL) by infusing INR 15,500 million ($212 million) of funds through a wholly owned subsidiary, a company official said on Wednesday, October 28.
The official said that on Tuesday the company received the official order of National Company Law Tribunal (NCLT) which on October 19 had given its approval of the takeover of ACCIL by JSW through the bankruptcy resolution process.
Asian Color Coated Ispat Limited was part of the Reserve Bank of India’s second list of 28 defaulting companies to banks referred to the insolvency court. The company operated a rolling mill complex with an installed capacity of 300,000 mt per annum for the production of coated steel products for industries like automobile and consumer durables manufacturing. The mill’s total production capacity is 1 million mt per annum.
As per the bankruptcy resolution process approved by NCLT, the financial lenders of bankrupt ACCIL will receive 22 percent of the total INR 71,230 million ($989 million) debt outstanding on the books of the ailing steel company.