NCLT's insolvency resolution plan completed: Monnet Ispat & Energy

The bankrupt Monnet owes over Rs 11,000 crore to a clutch of lenders.

Bankrupt Monnet Ispat & Energy today said the insolvency resolution plan approved by NCLT has been completed under which JSW Steel has provided a working capital advance of Rs 125 crore.

The bankrupt Monnet owes over Rs 11,000 crore to a clutch of lenders.

"This is to inform you that, as on August 31, 2018, the company has completed the necessary actions in respect of the implementation of the resolution plan," Monnet Ispat said in a regulatory filing.

It also said Rs 2,457 crore has been paid to the secured financial creditors.

"The company has executed a loan agreement with JSW Steel Limited on August 31, 2018 and pursuant thereto; JSW Steel Limited has provided a working capital advance to the company for an aggregate amount of Rs 125 crore on the terms and conditions set out in the resolution plan," Monnet Ispat said in the filing.

Monnet Ispat, once one of the country's foremost steelmakers, ran a successful coal-based sponge iron plant with an annual capacity of 1.5 million tonnes in Chhattisgarh.

The company ran into problems when the coal mines attached to the plant was canceled in 2014 after the Supreme Court order. Crashing steel prices on account of Chinese dumping further aggravated its crisis and resulted in bankruptcy proceedings.

Monnet was one of the 12 accounts that the Reserve Bank had identified in its first list tagged as the 'dirty dozen' for an immediate resolution mid-last year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)