<article><a href="https://www.dealstreetasia.com/?s=JSW Steel" target="_blank" rel="noopener">JSW Steel</a> and its promoters have acquired around 88 per cent stake in the <a href="https://www.dealstreetasia.com/?s=Monnet Ispat and Energy Ltd (MIEL)" target="_blank" rel="noopener">Monnet Ispat and Energy Ltd (MIEL)</a> following completion of the insolvency resolution proceedings.</article>

<a href="https://www.dealstreetasia.com/?s=JSW Steel" target="_blank" rel="noopener">JSW Steel</a> and its promoters have acquired around 88 per cent stake in the <a href="https://www.dealstreetasia.com/?s=Monnet Ispat and Energy Ltd (MIEL)" target="_blank" rel="noopener">Monnet Ispat and Energy Ltd (MIEL)</a> following completion of the insolvency resolution proceedings.
According to a filing by MIEL, the new promoters comprising JSW Steel Ltd, Crexient Special Steel Ltd, JTPM Atsali Ltd, AION Investments Private II Limited and JSW Techno Projects Management Ltd have been allotted around 87.52 crore equity shares and compulsorily convertible preference shares representing 87.91 per cent shareholding of the company.
A consortium of JSW Steel and AION Investments has paid Rs2,457 crore to the secured financial creditors of Monnet Ispat and Energy as set out in the resolution plan approved by the National Company Law Tribunal. Monnet Ispat has also secured a loan of Rs125 crore from JSW Steel for its working capital requirements, it said in BSE filing.
Monnet Ispat runs a coal-based sponge iron plant with an annul capacity of 1.5 million tonne in Chhattisgarh, and owed about Rs11,000-crore to its creditors. The Aion-JSW consortium was the sole bidder for the asset.
Monnet Ispat has allotted 21.52 crore equity shares of Rs10 each to the assenting secured and unsecured financial creditors in lieu of the conversion of a portion of the company’s admitted debt. A part of the debt has also been converted into optionally convertible preference shares of Milloret Steel, a special purpose vehicle owned by the consortium. It has issued an aggregate of 12,05,27,534 equity shares to the investors on record as of August 30.
The equity shares held by the erstwhile promoters of Monnet Ispat have been extinguished, and the remaining equity share capital held by the company’s non-promoter shareholders has been reduced, it said.
(With inputs from PTI)

A consortium of JSW Steel and AION Investments has paid Rs2,457 crore to the secured financial creditors of Monnet Ispat and Energy as set out in the resolution plan approved by the National Company Law Tribunal.

India: JSW Steel, promoters acquire about 88% in Monnet Ispat and Energy

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India: JSW Steel, promoters acquire about 88% in Monnet Ispat and Energy

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