JSW Steel announced that its wholly owned subsidiary JSW Steel Colour Products has infused INR 1,550 crore nto its subsidiary Hasaud Steel Ltd through a mix of equity and quasi-equity & debt instruments as per the resolution plan for acquisition of Asian Colour Coated Ispat on receipt of written order of NCLT on Tuesday. HSL, in turn, has paid INR 1,477 crore to certain financial creditors of Asian Colour Coated, towards assignment of its loans. Another INR 73 crore was extended as loan to Asian Colour Coated for onward payments to operational creditors, workmen & employees, and other financial creditors. With this JSW Colour Products has fully discharge its obligations under the resolution plan.
HSL has been issued equity shares of ACCIL by way of conversion of the above mentioned loan of INR 73.06 crores infused by it, in accordance with the Resolution Plan. Simultaneously, as provided in the Resolution Plan, the existing issued equity share capital of ACCIL comprising of 88,07,76,270 equity shares of face value INR 10 each held by the existing shareholders are cancelled and extinguished without any payment to the shareholders in accordance with the Resolution Plan.
Accordingly, immediately upon implementation of the Resolution Plan, HSL holds 100% of the equity interest in ACCIL.
Last Monday, NCLT had approved JSW Steel resolution plan with modification. The execution of the resolution plan was delayed due to uncertainty on the changes made by NCLT. The final written order of NCLT cleared the uncertainty on the modification made and paved the way for execution of the resolution plan.
Source: STEELGURU
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