JSW Steel completes acquisition of Asian Colour Coated Ispat

JSW Steel announced that it has completed the acquisition of Asian Colour Coated Ispat (ACCIL) through JSW Steel Coated Products (JSWSCPL), a wholly owned subsidiary of the company in the following manner:

a) Infusion of Rs 1500 crore by JSWSCPL into Hasaud Steel (HSL) through a mix of equity/ quasi equity/debt instruments as per the Resolution Plan.

b) HSL has paid Rs 1476.94 crore to creditors of ACCIL towards assignment of their ACCIL loans, and has infused Rs 73.06 crore into ACCIL in the form of a loan, for onward payments to operational creditors, workmen / employees, and other financial creditors of ACCIL, in full discharge of JSWSCPL's obligations under the Resolution Plan.

 

HSL has been issued equity shares of ACCIL by way of conversion of the above mentioned loan of Rs 73.06 crore infused by it, in accordance with the Resolution Plan. Simultaneously, as provided in the Resolution Plan, the existing issued equity share capital of ACCIL comprising of 88,07,76,270 equity shares of face value Rs 10 each held by the existing shareholders are cancelled and extinguished without any payment to the shareholders in accordance with the Resolution Plan.

Accordingly, immediately upon implementation of the Resolution Plan, HSL (a step-down wholly owned subsidiary of the Company) holds 100% of the equity interest in ACCIL.

Powered by Capital Market - Live News