Monnet Ispat & Energy Ltd.'s committee of creditors today approved a resolution plan submitted by a joint venture between AION Investments Pvt Ltd and JSW Steel Ltd.
The plan was approved by lenders with a 98.97 percent majority, Monnet Ispat said in an exchange filing. The bid will now be placed before the National Company Law Tribunal for final approval, before being implemented.
On Feb. 27, BloombergQuint had reported that the JSW-AION consortium had made a Rs 3,700 crore offer for Monnet Ispat. Of this, Rs 2,650 crore were to be used to repay lenders against admitted claims worth Rs 10,000 crore. That would mean that the financial creditors would take a 76 percent haircut on their exposure.
JSW-Aion's resolution plan also proposes transfer of Monnet Ispat's non-core assets into a new company to be sold later, BloombergQuint had reported.
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