Tata Steel, 3 others submit resolution plans for Electrosteel

8 January 2018

Tata Steel, Vedanta, Edelweiss ARC, and Renaissance Steel India are likely to have submitted resolution plans for Electrosteel Steels, one of the 12 companies mandated by the Reserve Bank of India (RBI) for insolvency.

The last date for submitting resolution plans was Thursday.

A Tata Steel spokesperson said: “As a process, we do assess and evaluate various strategic opportunities for growth. This is an ongoing process in the company.” An e-mail sent to Vedanta went unanswered while Edelweiss did not comment.

Electrosteel Steels has got a 90-day extension from the National Company Law Tribunal (NCLT), and it is with effect from January 17, 2018. According to the Insolvency and Bankruptcy Code rules, an application for an approved resolution plan has to be filed with the NCLT within 180 days, and can be extended by another 90 days.

Resolution plans, however, could be accepted even beyond the deadline.

With Electrosteel Steels, two of the five steel companies on the RBI’s list of 12 have crossed the deadline for submitting resolution plans, the first being Monnet Ispat & Energy. Monnet, however, had received a single bid from JSW Steel.

Source: BUSINESS STANDARD