National Company Law Tribunal, Mumbai Bench (“NCLT”) today issued its written order approving the resolution plan submitted by JSW Steel Coated Products Limited (“JSWSCPL”), a wholly owned subsidiary of JSW Steel Limited (“Company”), in respect of the corporate insolvency resolution process of National Steel and Agro Industries Limited (“NSAIL”) (the “Resolution Plan”) in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.
JSWSCPL will infuse funds by way of loan (in one or more tranches) for a total amount of INR 8,52,61,772 (“RA Loan”) towards full and final discharge and settlement of unpaid insolvency resolution process costs, payment towards operational creditors (including workmen and employees) and other mandatory payments in accordance with the terms of the Resolution Plan.
Further, JSWSCPL proposes to pay INR 612,47,38,228 to the financial creditor of NSAIL, towards assignment of the financial debt owed by NSAIL to such financial creditor. The total consideration for acquisition of the Target, thus, is INR 621 crores.
The existing issued equity share capital of NSAIL comprising of 4,45,00,000 equity shares of face value of INR 10 each held by the shareholders of NSAIL and existing issued preference share capital of NSAIL comprising of 55,01,022 preference shares of face value of INR 100 each held by preference shareholders of the NSAIL are proposed to be entirely cancelled and extinguished without any payment to the shareholders in accordance with the Resolution Plan. NSAIL shall be delisted without any exit price being paid to the shareholders.
Simultaneously, JSWSCPL proposes to issue equity shares of NSAIL by way of conversion of the above mentioned RA Loan of INR 8,52,61,772 which is proposed to be infused by it, in accordance with the Resolution Plan. Immediately, upon implementation of the Resolution Plan, JSWSCPL will hold 100% of the equity interest in NSAIL.
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