The Indian bankruptcy court has approved the acquisition of steel maker Mittal Corp Ltd by Shyam Metalics and Energy Ltd. The successful bidder, Shyam Sel and Power Ltd, will pay Rs 351 crore, resulting in a 20% recovery for all creditors. The financial creditors claim of Rs 1,587 crore will receive Rs 348.7 crore. The lenders had previously approved the revival plan with 100% voting in favor of Shyam Sel and Power.
The CoC of Mittal Corp Ltd has approved the Resolution Plan of Shyam Metalics And Energy Limited s Material subsidiary company i.e. Shyam Sel and Power Limited and declared it as Successful Resolution Applicant.
To meet market regulator SEBI’s norm, the promoters need to dilute their current holding of 88 per cent in Shyam Metalics by at least 13 per cent within the next 18 months, Agarwal said.