India: Insolvency Resolution Professional Invites EoI for Monnet Ispat & Energy
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The corporate Insolvency Resolution Professional (CIRP) has been initiated with regard to Monnet Ispat and Energy (MIEL). Following which Committee of Creditors has invited Expression of Interest (EoI) from investors/consortium of investors to submit resolution plan for MIEL under CIRP.
MIEL owns an integrated steel plant facility of 1.5 MnT pa along with associated facilities of 0.80 MnT pa sponge-iron facility, 2 MnT pa pellet plant, 0.95 MnT pa sinter plant and 230 MW captive power plant in Chhattisgarh. It also own a coal benefication facility of 7.5 MnT pa in Chhattisgarh and Odisha.
The transaction process shall be completed in two stages. 1st stage will consist of submission of EoI by interested Resolution Applicants followed by their shortlisting. The 2nd stage shall comprise of due diligence and submission of Resolution plans.
As per reports, the last date for submission of EoI by buyers is 25 Sept’17.
Monnet Ispat & Energy - Financial Performance
The company recorded net sales of approximately INR 1,375 crores for FY17 down 33% Y-o-Y. In FY17, company’s net loss widened by 11% Y-o-Y to INR 2,132 crore against INR 1,917 crore in previous year.
