Anil Agarwal-promoted Vedanta recently acquired the management control of the debt-ridden Electrosteel after a resolution plan of the former was approved by the National Company Law Tribunal under the Insolvency and Bankruptcy Code (IBC).
"The upfront payment of Rs 5,320 crore has been be remitted to the financial creditors from the escrow account as per the approved Resolution Plan," it said in a regulatory filing.
It also said Mahendra Singh Mehta has been appointed as an additional independent director of the company.
Upon implementation of the Resolution Plan, Vedanta would hold approximately 90 per cent of the paid up share capital of Electrosteel. The remaining 10 per cent of company's share capital would be held by Electrosteel's existing shareholders and the financial creditors who receive shares in exchange for the debt owed to them, Vedanta said earlier in a statement.
Electrosteel owns and operates a greenfield integrated steel manufacturing facility near Jharkhand's Bokaro which has a current capacity of 1.5 million tonnes per annum (mtpa) and the potential to increase to 2.5 mtpa.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
