NCLT Delhi okays resolution plan submitted by JSW Steel

Posted by freemexy on April 15th, 2019

National Company Law Tribunal (NCLT), New Delhi has approved the resolution plan submitted by JSW Steel as approved by the Committee of Creditors of Vardhman Industries Limited (VIL), which has been undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, Container Houses Supplier according to a notification by JSW Steel to the BSE on Thursday.

Vardhman Industries Ltd. is a manufacturer and wholesale supplier and exporters of a wide range of galvanizedtubes and coils, precision steel tubes, galvanized steel pipes, steel square tube, galvanized sheets, corrugated steel tubes, cold rolled steel sheets.

As per the terms of approved resolution plan, JSW Steel shall, infuse its commitment of Rs 63.5 crore in VIL through equity shares and/or debt within a period of 30 days from date of the NCLT order. The financial creditors shall receive a total consideration of Rs 62.5 crores and the operational creditors shall receive an aggregate consideration of Rs 1 crore for the settlement of the existing debt of VIL. Since the liquidation value payable to the existing shareholders of VIL as determined Under regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 after paying off dues in the order of priority as defined under section 53 of the-IBC is nil, the entire existing shareholding of VIL shall stand reduced to nil by way of a capital reduction with effect from the effective date, the notification by JSW Steel said. Also, as per the approved resolution plan, JSW Steel shall be classified as the promoter' of VIL, and the existing promoters / promoter group shall be de-classified as 'promoters / promoter group' of the company, it added.