CCI okays Vedanta acquisition of bankrupt Electrosteel Steels

The statement follows NCLT last month approving the resolution plan submitted by Vedanta Ltd for Electrosteel Steels.

"Vedanta Ltd (the company) has today received the approval from the Competition Commission of India (CCI) for the application made by it for the acquisition of Electrosteel Steels Ltd," the Indian unit of diversified mining group Vedanta Resources plc said in a filing to BSE. The NCLT had last month approved the resolution plan submitted by Vedanta Ltd for Electrosteel Steels, making it the first among 12 large stressed accounts identified by RBI last year to get resolved under the Insolvency and Bankruptcy Code.

The National Company Law Tribunal (NCLT) in an order had said that the "resolution plan of corporate debtor Electrosteel Steels Ltd which is approved by the CoC with a voting share of 100 per cent under section 31 (1) of the Insolvency & Bankruptcy Code 2016" has been approved.

The resolution plan involved close to Rs 5,300 crore cash payout and a haircut of 60 per cent of the total banks' debt.

Electrosteel Steels owes lenders more than Rs 13,000 crore, of which about Rs 5,000 crore is to State Bank of India alone.

Vedanta in a statement had said that "one of its wholly-owned subsidiaries will subscribe to the share capital of Electrosteel for an aggregate amount of Rs 1,805 crore ($275.7 million) and provide additional funds aggregating to Rs 3,515 crore ($536.9 million) by way of debt".