A JSW Steel manufacturing facility in Dolvi, Maharashtra. Asian Colour Coated Ispat went into insolvency in July last year after NCLT accepted an SBI plea against the bankrupt firm. (Photographer: Dhiraj Singh/Bloomberg)

Lenders Approve JSW Group’s Rs 1,550-Crore Bid For Asian Colour Coated Ispat

Lenders of Asian Colour Coated Ispat Ltd. have approved the JSW Group’s Rs 1,550-crore bid to acquire the debt-ridden steel firm, sources said.

Asian Colour Coated Ispat went into insolvency in July last year after the National Company Law Tribunal admitted an application by the State Bank of India to initiate corporate insolvency resolution process for the company.

The resolution professional appointed to carry out the insolvency process was Kuldip Bassi, supported by consultancy firm EY. The total admitted debt in the resolution process was around Rs 6,500 crore.

According to sources, the committee of creditors approved the bid of JSW Group, with nearly 80 percent of lenders voting in favour. For approval, a resolution plan needs at least 66 percent votes in favour.

For the acquisition of Asian Colour Coated Ispat, JSW Group has offered Rs 1,550 crore, almost all of which will go to financial creditors, sources said. SBI, Bank of Baroda and IDBI Bank are the main lenders, along with some other banks and financial institutions.

When contacted, a JSW spokesperson declined to comment.

Also read: JSW Group Bets On Paints Business, Eyes 10% Market Share By 2025

Asian Colour Coated Ispat is a steel products manufacturer and has plants near Delhi and Mumbai with an annual capacity of 1 million tonnes. The company specialises in downstream, galvanised and colour-coated products which are exported to Europe, Latin America and Africa.

Last year, a JSW Steel Ltd.-led consortium had acquired a majority stake in Monnet Ispat and Energy Ltd. for Rs 2,875 crore under the Insolvency and Bankruptcy Code.

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