Monnet Ispat says NCLT's insolvency resolution plan completed
Bankrupt Monnet Ispat & Energy today said the insolvency resolution plan approved by NCLT has been completed under which JSW Steel has provided a working capital advance of Rs 125 crore.
The bankrupt Monnet owes over Rs 11,000 crore to a clutch of lenders.
"This is to inform you that, as on August 31, 2018, the company has completed the necessary actions in respect of implementation of the resolution plan," Monnet Ispat said in a regulatory filing.
It also said Rs 2,457 crore has been paid to the secured financial creditors.
"The company has executed a loan agreement with JSW Steel Limited on August 31, 2018 and pursuant thereto; JSW Steel Limited has provided a working capital advance to the company for an aggregate amount of Rs 125 crore on the terms and conditions set out in the resolution plan," Monnet Ispat said in the filing.
Monnet Ispat, once one of the country's foremost steel makers, ran a successful coal-based sponge iron plant with an annul capacity of 1.5 million tonne in Chhattisgrah.
The company ran into problems when the coal mines attached to the plant was cancelled in 2014 after the Supreme Court order. Crashing steel prices on account of Chinese dumping further aggravated its crisis and resulted into bankruptcy proceedings.
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Monnet was one of the 12 accounts that the Reserve Bank had identified in its first list tagged as the 'dirty dozen' for an immediate resolution mid-last year.