Vedanta deposits Rs 5,320 cr in Electrosteel Steels escrow account

Vedanta Ltd today said it has deposited an upfront amount of Rs 5,320 crore in the escrow account of Electrosteel Steels Ltd (ESL) following the latter's acquisition through the insolvency process.

In March, Vedanta was declared as successful resolution applicant by the committee of creditors (CoC) for ESL under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016.

"Pursuant to the order dated May 30, 2018, of National Company Law Appellate Tribunal, Vedanta Limited is implementing the approved Resolution Plan for Electrosteel Steels Limited (ESL).

"Vedanta Star Limited ('VSL'), a wholly-owned subsidiary of our company, has deposited the upfront amount of INR 5,320 crore in escrow account of ESL and June 4, 2018 has been determined to be the 'Effective Date' under the Resolution Plan," Vedanta said in a filing to BSE.

The company has acquired control over ESL and a new board of directors has been put in place.

Investment from VSL in ESL shall be done through a combination of equity of Rs 1,765 crore and inter-corporate loan of Rs 3,555 crore, the company added.

The National Company Law Appellate Tribunal (NCLAT) had allowed Vedanta Ltd to make an upfront payment of Rs 5,320 crore to lenders for acquiring Electrosteel Steels.