A worker grinds steel used for ship sections at a factory. (Photographer: Piotr Malecki/Bloomberg)

Monnet Ispat Says NCLT’s Insolvency Resolution Plan Completed

Monnet Ispat & Energy Ltd. said the insolvency resolution plan approved by National Company Law Tribunal has been completed under which JSW Steel Ltd. has provided a working capital advance of Rs 125 crore.

“This is to inform you that, as on Aug. 31, the company has completed the necessary actions in respect of implementation of the resolution plan,” Monnet Ispat said in a regulatory filing.

The distressed company owes over Rs 11,000 crore to a clutch of lenders. It also said Rs 2,457 crore has been paid to secured financial creditors.

Also read: IBC: Aion-JSW Steel Wins Monnet Ispat Bid; Banks Take 74% Haircut

Monnet Ispat, once one of the country's foremost steel makers, ran a successful coal-based sponge iron plant with an annual capacity of 1.5 million tonne in Chhattisgarh. The company ran into problems when the coal mines attached to the plant were cancelled in 2014 after a Supreme Court order. Crashing steel prices on account of Chinese dumping further aggravated its crisis and resulted into bankruptcy proceedings.

Monnet was one of the 12 accounts that the Reserve Bank of India had identified in its first list tagged as the 'dirty dozen' set for immediate resolution mid-last year.