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CoC of Adhunik Metaliks okays UK-based Liberty House Group resolution plan

Adhunik Metaliks, with 1,000 jobs and a customer base that includes Ashok Leyland, Amtek and oil & gas and farm equipment makers, now awaits NCLT nod

Aditi Divekar  |  Mumbai 

Illustration: Binay Sinha

The (CoC) of (AML) has approved UK-based Group resolution plan for the insolvent company, sources close to the development told Business Standard on Thursday.

“The CoC has approved resolution plan by an overwhelming majority of nearly 99 percent,” sources at informed.

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 (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.

employs 1,000 people and a strong clientele which includes 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.”

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. against Adhunik Metaliks, its subsidiary Orissa Manganese & Minerals (OMML), and group company Zion Steel were admitted by the Kolkata bench of 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.

Adhunik Metaliks financial health

  • Operating losses since FY15
  • Company has 1000 jobs
  • Consolidated debt at Rs 50,000 million as on March 31, 2017
  • Losses have grown between FY15-FY17

First Published: Thu, July 05 2018. 21:13 IST