Mumbai: The committee of creditors of stressed steel mill Asian Colour Coated Ispat in a meeting held on Friday, approved JSW Steel's offer to acquire the stressed steel plant.

Asian Colour Coated Ispat has outstanding debt of over 5,000 crore.

"The CoC voting was completed on Friday. JSW's bid was accepted by 80% of COC of Asian Colour Coated Ispat. The bid includes a 1,525 crore upfront payment to lenders and another 25 crore payment to operational creditors," said a person aware of the development, on the condition of anonymity.

JSW Steel declined to comment.

In May, Mint reported that JSW Steel has improved its bid to 1,500 crore from the previous bid of 1,000-1,200 crore range, which bankers were unwilling to approve.

State Bank of India, Punjab National Bank and JM Financial are some of the lenders to Asian Colour Coated Ispat.

Asian Colour Coated Ispat was part of the Reserve Bank of India's (RBI) 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 (SBI), which has claims of 1,692 crore against the asset and JM Financial ARC, with claims of 995 crore.

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