Ratan Jindal promoted Jindal Stainless Steel has emerged as the highest bidder for distressed steel company Mittal Corp that is undergoing insolvency proceedings. Jindal Stainless Steel made the highest offer of Rs.250 crore as upfront cash payment among the six companies that submitted a firm bid. Once the deal is concluded, it would be the first acquisition by Jindal Stainless Steel under the Insolvency and Bankruptcy Code.
Indore-based Mittal Corp, which has two steel making units, has verified claims of Rs 1,587 crore. The offer from the highest bidder translates to a recovery of 16% for lenders. Punjab National Bank, State Bank of India, IDBI Bank and ACRE are among the key lenders of the bankrupt steel companies.
Mittal Corp is also among 15 shortlisted companies that would be transferred to the bad bank: National Asset Reconstruction Company Ltd.
In 2016, lenders attempted to sell the company to a strategic buyer by converting its debt into 51% equity under the then prevailing Strategic Debt Restructuring scheme approved by the Reserve Bank of India. However, the account deteriorated, and lenders were unable to find any buyer. It was subsequently admitted to NCLT following a petition from PNB.
