NCLT Mumbai Approves Mittal Corp Ltd.'s Merger with Shyam Metalics & Energy Subsidiary
The National Company Law Tribunal, Mumbai Bench, consisting of Kuldip Kumar Kareer and Anil Raj Chellan, has granted its
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NCLT Mumbai Approves Mittal Corp Ltd.'s Merger with Shyam Metalics & Energy SubsidiaryThe National Company Law Tribunal (NCLT), Mumbai Bench, consisting of Kuldip Kumar Kareer (Judicial Member) and Anil Raj Chellan (Technical Member), has granted its approval to the Resolution Plan put forth by Shyam Sel and Power Limited (a subsidiary of Shyam Metalics & Energy Ltd.) for Mittal Corp...
NCLT Mumbai Approves Mittal Corp Ltd.'s Merger with Shyam Metalics & Energy Subsidiary
The National Company Law Tribunal (NCLT), Mumbai Bench, consisting of Kuldip Kumar Kareer (Judicial Member) and Anil Raj Chellan (Technical Member), has granted its approval to the Resolution Plan put forth by Shyam Sel and Power Limited (a subsidiary of Shyam Metalics & Energy Ltd.) for Mittal Corp Ltd. This resolution plan is valued at ₹351 crore and outlines the merger of the two companies following implementation of the plan.
The Corporate Debtor, initially established as Jewels Steel Limited in 1985, underwent a name change to become Mittal Corp Limited. This company specialises in the production of stainless steel billets, blooms, rolled flats, and wire rods.
The NCLT, on November 10, 2021, accepted the Corporate Debtor's admission into the Corporate Insolvency Resolution Process (CIRP).
Shyam Sel and Power Limited (referred to as the Successful Resolution Applicant or SRA) operates as a subsidiary of Shyam Metalics and Energy Ltd., a publicly-listed company engaged in steel manufacturing. The SRA presented a Resolution Plan for the Corporate Debtor, which garnered unanimous approval from the Committee of Creditors (CoC) with a 100 per cent vote. In line with this, the Resolution Professional filed an application under Section 30(6) of the Insolvency and Bankruptcy Code (IBC) with the NCLT, requesting the approval of the Resolution Plan.
The Resolution Professional accepted the claims filed by the Corporate Debtor's creditors, totalling ₹1767.49 crore. The average Liquidation Value of the Corporate Debtor is ₹11,417.59 lakh, while the average Fair Value is ₹18,013.67 lakh. The Resolution Plan proposed by the Successful Resolution Applicant has a total value of ₹351 crore, inclusive of the Corporate Insolvency Resolution Process costs.
The resolution plan proposes payments to various creditors as follows: Secured Financial Creditors will receive ₹348.77 crore against an admitted claim of ₹1587.51 crore, workmen and employees are being paid ₹73 lakh in contrast to their admitted claim of ₹74 lakh, Operational Creditors (Statutory/Government Dues) will receive ₹1 crore against their admitted claim of ₹73.27 crore, and other Operational Creditors will be paid ₹50 lakh while their admitted claim stands at ₹105.97 crore.
Furthermore, the Successful Resolution Applicant will ensure full payment of any outstanding dues pertaining to the provident fund, gratuity fund, and pension fund of the Workmen and Employees, taking into account any prior disbursements, if applicable.
Following the execution of the Resolution Plan, which has been approved by the Bench, the Corporate Debtor Mittal Corp Limited will merge with the Successful Resolution Applicant Shyam Sel and Power Limited.