NCLT approves Orissa Metaliks Rs 595-cr bid for Metenere Limited

The New Delhi bench of the National Company Law Tribunal (NCLT) has approved the Rs 595-crore resolution plan by Orissa Metaliks Private Limited for corporate debtor Metenere Limited. The resolution plan was earlier approved by the committee of Creditors by 98.94%. Metenere Limited owed Rs 3,672 crore to all creditors.

As per the resolution plan, financial creditors would receive Rs 272 crore against their admitted claims of Rs 3,152 crore. Secured operational creditor (government dues) gets Rs 5.61 crore against their admitted claims of Rs 230 crore. The resolution plan has a set aside a sum of Rs 17 crore as insolvency process cost.

Further, in the Resolution Plan, Orissa Metaliks also proposes to infuse a sum of Rs 300 crore as additional infusion towards operational requirements, working capital requirements and/or capital expenditure requirements of corporate debtor Metenere Limited within 6 months of payment date.

Transaction structure

The successful resolution applicant, for the purposes of making payments to the creditors under the COC Approved Resolution Plan and acquiring equity shares of the CD, proposes to infuse:

Equity Component: Rs 1 crore towards subscription of 10,00,000 fresh equity shares of the Corporate Debtor at face value to be issued and allotted by the Corporate Debtor to the Successful Resolution Applicant and/or its nominees.

Debt Component: Rs 294 crore as unsecured debts at such interest which is commensurate with the prevailing yield of such Govt. Security

Immediately upon issuance of the shares of the company, the entire existing equity shares of the corporate debtor shall be cancelled and extinguished at NIL value.

Metenere Limited (formerly known as Met Trade India Ltd.) is a company specializing in the production of non-ferrous metals, particularly aluminum, lead, copper, zinc, and tin. The company is also a significant producer of lead and the sole producer of pure tin in India. With an annual turnover of Rs. 1800 Crores, Metenere is among India’s top-tier business conglomerates.

As a transnational corporation, the group operates multiple manufacturing units across various sectors in India and abroad. Metenere has a global footprint, with operations in India, the UK, France, Brazil, UAE, Rwanda, Bhutan, Ghana, Argentina, and the Democratic Republic of Congo.

Orissa Metaliks Private Limited (OMPL), a leading Indian iron and steel company and part of the Rashmi Group, was incorporated on July 29, 2006. It has a registered office in Kolkata, West Bengal.

OMPL is a major player in the Indian iron and steel industry with extensive expansion plans across the entire value chain, including pellet production, sponge iron manufacturing, steel melting, wire drawing, captive power generation, and iron ore beneficiation.

The company achieved a turnover of approximately INR 12,581 Crores in the financial year 2021-22. On March 5, 2024, CRISIL reaffirmed its ‘CRISIL AA-/Positive’ rating for OMPL’s bank facilities. As of March 31, 2023, OMPL had a net worth of Rs 6,047 crore and held Rs 260 crore in fixed deposits with various banks.

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