UK-based Liberty House, part of Sanjeev Gupta's global GFG Alliance, on Monday, said it has received approval of the Committee of Creditors to acquire and revive Adhunik Metaliks' steel plant at Chadrihariharpur near Rourkela in Odisha.
The plant currently has steelmaking capacity capable of being expanded to one million metric tonnes per annum, the company said in a statement.
"Its integrated operations include sponge iron, blast furnace, electric furnaces, and downstream rolling of finished steel products," it said and added that the business already employs almost a thousand people.
Adhunik Metaliks manufactures ferro alloys, billets, bars and rounds. Its customer segments are automotive, engineering, oil and gas, telecom, defence, power, railways and construction.
Within automotive, Adhunik has approvals from leading original equipment manufacturer (OEMs) and supplies Tata Motors, Mahindra, Ashok Leyland, Ramakrishna Forging, JMT Auto, and Amtek Auto which has also received approval from creditors for acquisition by Liberty House.
Adhunik Metaliks had been in corporate insolvency resolution process since August last year.
Liberty House Group's resolution plan received the unanimous support of the committee of creditors (CoC) as the most competitive plan which takes into account best recovery for lenders and also a solid plan needed to revive and stabilise the company, the statement said.
"We have important ambitions for India and approval to acquire Adhunik is a milestone on our path towards implementing our vision for sustainable steel production and downstream manufacturing in the country.
"Adhunik's integrated operations, and supply linkages to downstream industry, especially to Amtek Auto, also recently approved for acquisition by Liberty House, will enable us to build this value chain progressively," GFG executive chairman Sanjeev Gupta said.