JSW Steel’s to Acquire Asian Colour Coated Ispat Ltd

JSW Steel’s to Acquire Asian Colour Coated Ispat Ltd
20/10/2020 , by , in ALLIED

The Delhi Bench of National Company Law Tribunal approved the resolution plan submitted by JSW Steel to acquire bankrupt steel company Asian Colour Coated Ispat Ltd (ACCIL) for Rs 1,550 crore.

“JSW Steel Coated Products, wholly owned subsidiary of JSW Steel, to acquire Asian Colour Coated with certain modification in the resolution plan approved by the lenders,” JSW Steel said in a statement. The written order is awaited.

In 2018, ACCIL was included in the Reserve Bank of India’s second list of defaulters on which banks were asked to take corrective action. State Bank of India, Punjab National Bank and JM Financial are among the lenders to Asian Colour Coated Ispat.

Asian Colour was listed for insolvency the same year, which saw JSW Steel make an initial offer of Rs 1,200 crore. After this, the promoters of the company took the case to NCLAT over a legal issue on the land owned by the company.

In August 2020, US-based venture capital firm Interups made a counter offer of Rs 2,000 crore to JSW Steel’s deal. However, NCLT has now chosen JSW Steel as the acquirer.

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