Debt-laden Monnet Ispat and Energy Ltd has received a Rs 3,500 crore ($545.5 million) resolution plan from a consortium comprising Sanjan Jindal-led JSW Steel and distressed assets fund AION Capital Partners, according to a media report.
Monnet Ispat is undergoing a corporate insolvency resolution process initiated by National Company Law Tribunal.
The resolution plan involves paying Rs 2,500 crore to lenders and an equity investment of Rs 1,000 crore, The Economic Times reported citing two bankers aware of the development.
“Post the equity restructuring, the consortium will have 70% equity, lenders led by SBI will have 10% and the public 20%,” the report quoted one of the bankers as saying.
Monnet Ispat is one of 12 large loan defaulters identified by the Reserve Bank of India in its first list for debt resolution under the Insolvency and Bankruptcy Code.
The company has debt worth more than Rs 10,000 crore, according to the report.
Incorporated in 1990, Monnet Ispat is engaged in manufacturing and marketing of sponge iron, steel and ferro alloys. It has an integrated steel plant with production capacity of 1.5 million tonnes per annum at Raigarh in Chhattisgarh.
Meanwhile, Indian-origin Canadian billionaire Prem Watsa's Fairfax group-controlled Bangalore International Airport Ltd has reshuffled its senior management, The Economic Times reported.
Hari Marar has been promoted managing director of BIAL while Javed Malik has been appointed as chief operating officer. Former GMR Infra executive Bhaskar Anand Rao is the new chief financial officer, according to the report.
Fairfax has picked up a majority stake in BIAL through a series of investments in the last two years.
BIAL operates the Kempegowda International Airport in Bengaluru. The Airports Authority of India, the Karnataka government and German’s Siemens Project Venture are BIAL’s other shareholders.