Monnet Ispat wants Sajjan Jindal led-JSW Steel investment considered

24-July-2017

Monnet Ispat has said that it will abide by the order of the NCLT but would like it to consider an investment by a prospective buyer, referring to precedence set while dealing with Jyoti Structures.

Monnet had said during the July 13 hearing that the Sajjan Jindal led-JSW Steel was a prospective buyer, and sought more time, arguing that “the proceedings in the tribunal may jeopardise the deal”.

The representative for Monnet declined to provide any further details on the aforementioned deal. After multiple hearings, Monnet said it will abide by NCLT’s order.

“We do concede there is a default and we will abide by your order,” said Zal Andhyarujina, counsel for Monnet Ispat. But he pleaded that Monnet Ispat has a prospective buyer and would like the NCLT to acknowledge it the way it made a provision in the case of Jyoti Structures.

State Bank of India (SBI), one of the major lenders to the company, had filed an application with the Mumbai bench of NCLT after the central bank directive that referred defaulting companies to the tribunal under the Insolvency and Bankruptcy Code, 2016. Using the Jyoti Structures order as a precedent, Andhyarujina said, “There are prospective investors to take over this company as a going concern and may be permitted to place this information before the Insolvency Resolution Professional.”

Source: Economic Times