Tata Steel Mining’s bid for West Bengal-based ferro alloy manufacturer gets lenders’ nod
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 5 June 2021.
The resolution plan will now be put before the National Company Law Tribunal (NCLT) for final approval. Tata Steel Mining has accepted the Letter of Intent for acquisition of Rohit Ferro-Tech under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC).
The insolvency application against the Bishnupur-, West Bengal-based manufacturer of ferro alloy manufacturer, was initiated by State Bank of India (SBI) for defaulting on a debt of Rs 1,792 crore. The Kolkata Bench of NCLT admitted the application in February 2020.
The company owed around Rs 4,200 to different creditors – Rs 3,885 crore to financial creditors and Rs 230 crore to operational creditors.
Total 11 companies had submitted Expression of Interest for acquisition of the Rohit Ferro-Tech. These included Tata Steel Mining, Vedanta Ltd, Rare ARC and Jindal Stainless.
Rohit Ferro-Tech has 274,583 tonne per annum (TPA) capacity for Ferro Alloy manufacturing and 100,000 TPA steel manufacturing capacity. The company had posted a total revenue of Rs 740 crore and a net loss of Rs 153 crore in 2019-20.
In October-December 2020, the company reported revenue of Rs 189 crore and a loss of Rs 22 crore.
Tata Steel Mining Limited is a 100% subsidiary of Tata Steel and is head quartered in Bhubaneswar, Odisha. The Company is working to develop commercial mining opportunities in addition to Ferro Alloys business.
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