Amalgam Steel acquires Topworth Steel and Power for Rs 260 crore
The NCLT has approved the Rs 260-crore resolution plan of Amalgam Steel and Power Limited for bankrupt Topworth Steel and Power Private Ltd. The resolution plan was earlier approved by the committee of creditors by a vote share of 89.61%.
State Bank of India (SBI) had initiated insolvency proceedings against Topworth Steel and Power in January 2020 for defaulting on a payment of Rs 835 crore. The company owed around Rs 3,500 crore all its creditors.
As per the resolution plan, secured financial creditors will receive Rs 236 crore against their admitted claims of Rs 2,672 crore. Unsecured creditors received Rs 97 lakh against their total claims of Rs 257 crore. Operational creditors received just over Rs 3.16 crore while Rs 20 crore was provided for as CIRP cost.
The average liquidation value of Topworth Steel and Power was determined as Rs 238 crore while the average fair value was determined as Rs 345 crore
About Topworth Steel and Paower
Topworth Steel and Power was incorporated in 2004 on a green field project for establishing a Mini Integrated Steel Plant. The unit/site is centrally located in India in Durg District of Chhattisgarh.
Several other group companies of Topworth Steel and Power Ltd are also undergoing CIRP, the latest being Topworth Urja and Metals Limited. Topworth Urja and Metals Ltd has been dragged into CIRP by Bank of Baroda in August 2022 for defaulting on a payment of Rs 218 crore.
About Amalgam Steel and Power
Amalgam Steel & Power Limited is part of the Amalgam Steel group. It has a 2 x 350 TPD DRI Plant with an installed capacity of 0.3MTPA, 2 x 30-ton Induction Furnaces with an installed capacity of 198000 TPA billet, and a 30 MW Captive Power Plant. The plant has also its railway siding. Amalgam Steel & Power Limited has adequate land for setting up full-fledged steel manufacturing facilities. It is an ISO-certified company and is concerned about the environment in and around the plant area.
