The committee of creditors (CoC) of Adhunik Metaliks (AML) has approved UK-based Liberty House Group resolution plan for the insolvent company, sources close to the development told Business Standard on Thursday.
Sanjeev Gupta-led Liberty House was the highest among two bidders which had resolution application also from Maharashtra Seamless of DP Jindal Group.
Debt-laden Adhunik Metaliks, flagship company of the group, has an integrated steel plant of 0.45 million tonne at Sundergarh, Odisha. The company has a strong backward integration with captive iron ore mine at Keonjhar and captive coal mines at Talcher and Angul in Odisha.
“The plan will now move to the next and final level, for an NCLT (National Company Law Tribunal) nod. We await that.
However, the hearing date it not known yet,” informed the source.
Among other NCLT-listed companies, Liberty House has emerged as the highest bidder for Amtek Auto as well.
Adhunik Metaliks employs 1,000 people and a strong clientele which includes companies such as Ashok Leyland, Amtek along with oil & gas and agriculture equipment manufacturing firms. The company also caters to diversified sectors including automobiles, telecom, power, railways, engineering and construction.
With regard to management reshuffle at Adhunik, the Liberty source said, “It is too early to say anything as of now, but it would always be an advantage to have Adhunik team as part of the new management since they have been with the business for long.”
Adhunik Metaliks has been in operating losses for quite sometime now amid dwindling revenue stream. As on March 31, 2017, the company's consolidated net debt stands at about Rs 50,000 million. Bankruptcy proceedings against Adhunik Metaliks, its subsidiary Orissa Manganese & Minerals (OMML), and group company Zion Steel were admitted by the Kolkata bench of NCLT in August 2017. State Bank of India (SBI), which leads the consortium of lenders to the companies, had in July last year filed insolvency petitions over non-payment of loans.