Vedanta Ltd, the Indian unit of diversified mining group Vedanta Resources plc, said on Saturday (31) it had won in an auction to acquire bankrupt Electrosteel Steels Ltd.
Electrosteel Steels, which is setting up a 2.5 million tonnes a year steel plant in eastern India, is among India’s 12 biggest loan defaulters which were pushed to bankruptcy proceedings last year. The company had received claims totaling 133 billion rupees from its creditors.
Vedanta said in a statement late on Saturday it had received and accepted a letter of intent from Electrosteel Steels’ creditors’ group, led by top lender State Bank of India.
The closure of the deal is subject to regulatory compliance and approval by the National Company Law Tribunal, India’s designated court for bankruptcy cases, the statement added.
Tata Steel, privately-held Renaissance Steel and Edelweiss Alternative Asset Advisors Pte Ltd were the suitors for Electrosteel Steels.