The National Company Law Tribunal (NCLT) has approved the resolution plan for acquisition of ferro alloys and stainless steelmanufacturer Rohit Ferro-Tech’s (RFTL) by a subsidiary of Tata Steel, Tata Steel Mining.
This is yet another acquisition for Tata Steel through a wholly owned subsidiary, under the Insolvency and Bankruptcy Code. The Committee of Creditors (CoC) of Rohit-Ferro Tech Ltd has declared Tata Steel Mining as the successful resolution applicant for the insolvent ferro alloy manufacturing company.
The lenders who form the committee of creditors (CoC) approved the Tata Steel Mining resolution plan with the requisite majority.
In February 2020, the NCLT’s Kolkata bench admitted the State Bank of India’s petition to initiate the Corporate Insolvency Resolution Process against RFTL under Section 7 of the Insolvency and Bankruptcy Code. “… the Resolution Professional has filed the Resolution Plan (as approved by the CoC on June 5), with the National Company Law Tribunal, Kolkata Bench on June 7, 2021 for its subsequent approval thereupon,” a stock exchange filing said.
“Tata Steel Mining Limited (TSML), a wholly owned subsidiary of Tata Steel Limited has been declared as the successful resolution applicant by the Committee of Creditors for acquisition of Rohit Ferro-Tech Limited (‘RFT’) on June 5, 2021, subject to it obtaining necessary regulatory approvals including approval from the National Company Law Tribunal (NCLT),” Tata Steel said in a regulatory filing.
RFTL made a loss of Rs 679.36 crore for FY20, while revenue from operations stood at Rs 738.35 crore. Its manufacturing units/ divisions are at Bishnupur and Haldia in West Bengal and Jajpur in Odisha.
The lenders to the insolvent company include State Bank of India, Punjab National Bank, Bank of Baroda, UCO Bank, Canara Bank and Exim Bank, according to its latest annual report.
Tata Steel Mining is a subsidiary of Tata Steel headquartered in Bhubaneswar. The company works to develop commercial mining opportunities in addition to ferro alloys business.