Steering committee formed to manage Electrosteel Steels



Source: THE HINDU BUSINESSLINE

A steering committee comprising majority nominees representing the financial creditors of Electrosteel Steels (ESL) and minority nominees from Vedanta Ltd has been constituted to take care of the management of ESL.

The steering committee has appointed PwC as an Independent Managing Authority (IMA), ESL said in a regulatory filing to stock exchanges on Friday.

The National Company Law Tribunal (NCLT), had, on Tuesday okayed Vedanta’s bid to acquire the bankrupt ESL.

The acquisition will be complete post approval from the Competition Commission of India and market regulator SEBI.

“Pursuant to its order dated April 17, 2018 (Resolution Plan), on and from the date of approval of the Resolution Plan by the NCLT until the date on which Vedanta Ltd acquires control of the company as per terms of the plan, it is required to be monitored by an IMA under the instructions, control and management of a steering committee,” ESL said.

Accordingly, the erstwhile Resolution Professional (Dhaivat Anjaria) has handed over the management affairs of the company to the IMA, which is acting under the supervision and instructions of the steering committee.

Vedanta offered to pay ₹5,320 crore for the distressed ESL, having a total debt of close to ₹13,000 crore.

ESL’s integrated steel plant at Bokaro in Jharkhand has a capacity of 1.5 million tonne with a potential to increase to 2.5 million tonne.

ESL is the first major stressed account, out of the initial lot of 12 accounts referred by RBI, to be resolved under the Insolvency and Bankruptcy Code (IBC).

Source: THE HINDU BUSINESSLINE