The committee of creditors of stressed steel mill Asian Colour Coated Ispat is due to vote today on a revised offer from JSW Steel. Asian Colour Coated Ispat has outstanding debt of over ₹5,000 crore.
JSW Steel has improved its bid to ₹1,500 crore, a person close to the development told Mint, requesting anonymity.
JSW Steel’s initial bid was in the ₹1,000 crore to ₹1,200 crore range, which bankers were unwilling to approve. JSW, one of India’s largest private sector steel manufacturers, improved its offer last week.
“State Bank of India, Punjab National Bank and JM Financial, which represent the majority of the committee of creditors are likely to vote in favour of the bid," the person said. “The unsecured creditors do not receive much in this offer, so there’s a high probability that this case will be headed to court as well."
ArcelorMittal, which is currently bidding for Essar Steel, was believed to be interested in this asset as well. But with the timelines in the Essar Steel resolution stretched, Asian Colour Coated Ispat’s committee of creditors chose to settle this case sooner.
Asian Colour Coated Ispat was part of the RBI’s second list of 28 defaulters that banks were to refer to insolvency court. The company runs a cold rolling mill complex with an installed capacity of 3,00,000 tonnes per annum for manufacturing cold rolled, galvanised and colour-coated products for the automobile, white good and general engineering sectors. Kuldip Kumar Bassi of KK Bassi and Associates is the resolution professional for the asset.
The committee of creditors for the asset is led by State Bank of India, which has claims of ₹1,692 crore against the asset and JM Financial ARC claims of ₹995 crore.