Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Infrastructure/  Royale Partners’ resolution plan for EPC gets CoC nod
BackBack

Royale Partners’ resolution plan for EPC gets CoC nod

The banks had declared EPC Constructions a non-performing asset on 31 December 2014
  • This comes after the lenders for EPC rejected the offer submitted by ArcelorMittal and called for fresh bids
  • The resolution plan has been placed before NCLT for final approval. (Abhijit Bhatlekar/ Mint)Premium
    The resolution plan has been placed before NCLT for final approval. (Abhijit Bhatlekar/ Mint)

    MUMBAI : The committee of creditors (CoC) for EPC Constructions India Ltd (formerly Essar Projects India Ltd) has approved the resolution plan submitted by Mauritius-based investor Royale Partners Investment Fund, two people aware of the development said, requesting anonymity.

    The development comes after the lenders of debt-ridden EPC Constructions rejected the offer submitted by ArcelorMittal SA, and called for fresh bids.

    A Royale Partners spokesperson confirmed the development. “We have received approval from 73% of the CoC for our resolution plan submitted for Essar Projects India Ltd," the spokesperson said in an emailed response, without divulging further details. The resolution plan has also been placed before the National Company Law Tribunal (NCLT) for final approval.

    On 31 December, Mint had reported that the lenders of EPC Constructions had called for fresh bids after rejecting an offer from ArcelorMittal SA because they found it too low. Initially, ArcelorMittal was the sole suitor, trying to pick up the debt-laden company at a 93% discount.

    The Luxembourg-based firm had submitted a bid of 500 crore, against EPC Constructions’ outstanding loans of 7,268 crore.

    The steel behemoth had also promised to bring in some equity at a later stage, which was conditional to the approval of its resolution plan. The proposal, however, was rejected as the lenders sought more cash upfront.

    This is the second Essar group company, after Essar Steel, that ArcelorMittal had shown interest in acquiring. A wholly owned unit of Essar Projects Dubai, EPC Constructions is involved in building infrastructure projects, power plants and refineries, among others.

    The steel major had hoped to use the EPC arm as an add-on to its purchase of Essar Steel, which has still not been finalized due to a long-drawn legal battle.

    Lenders having exposure to EPC Constructions include IDBI Bank ( 1,117 crore), Central Bank of India ( 1,054 crore), UCO Bank ( 1,011 crore), Exim Bank ( 884 crore), Corporation Bank ( 722 crore) and Suraksha Asset Reconstruction Co. ( 642 crore).

    It was referred to the bankruptcy court by IDBI Bank and was admitted under the IBC on 20 April 2018.

    The banks had declared EPC Constructions a non-performing asset on 31 December 2014, and issued a demand notice on 8 November 2017, as per NCLT.

    maulik.v@livemint.com

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 04 Feb 2019, 12:32 AM IST
    Next Story footLogo
    Recommended For You
    Infrastructure Stocks
    ₹18.38-2.39%
    ₹3,706.11.83%
    ₹266.251.6%
    Switch to the Mint app for fast and personalized news - Get App