Home >Companies >Liberty House’s resolution plan for Adhunik, Zion gets lenders’ nod

Mumbai: The UK-based Liberty House on Thursday said its resolution plan for Adhunik Metaliks Ltd and its sister concern Zion Steel Ltd has received overwhelming voting support from lenders to the two companies. Liberty House was the sole bidder for the stressed asset.

While details are yet to be made public, media reports have indicated the offer was for 600 crore. The committee of creditors approved the resolution plan with a 99% majority, a spokesperson for Liberty House said.

The plan was approved after the 270-day deadline under the insolvency process was extended and just before Adhunik Metaliks would have gone into liquidation.

Liberty House’s resolution plan now needs to be approved by the Kolkata bench of the National Company Law Tribunal (NCLT).

State Bank of India, ICICI Bank Ltd, UCO Bank, Allahabad Bank and Punjab National Bank are some of the major lenders to the Adhunik group.

The Adhunik group, which comprises four firms, owes in excess of 5,000 crore to banks. On 26 June, unlisted group firm Orissa Manganese and Minerals Ltd was awarded to Ghanshyam Mishra and Sons under the bankruptcy process. Adhunik Metaliks manufactures steel primarily for automotive and engineering sectors. The firm runs a steel plant, a captive power plant and associated facilities in Odisha.

For Liberty House promoted by British industrialist Sanjeev Gupta, this will be the first acquisition in India. It has bids running for three other bankrupt firms—Bhushan Power and Steel, Amtek Auto and ABG Shipyard.

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