INSUBCONTINENT EXCLUSIVE:
MUMBAI: Creditors led by the State Bank of India have voted in favour of accepting the offer of little-known Ghanashyam Misra Sons for
Adhunik group company Orissa Manganese Minerals, which involves a 95% haircut, said two executives who did not want to be
named.
Ghanashyam, which is said to be engaged in mining, will pay Rs 250 crore cash upfront to lenders, as per its bid, which got the
backing of 89% of the creditors by value
The company owes Rs 5,433 crore to lenders
Orissa Manganese is among four Adhunik group companies facing bankruptcy proceedings.
The others are Zion Steel, Adhunik Metalliks and
Ghanashyam Misra will retain debt of Rs 150 crore in the mining unit and Rs 400 crore in the pellet division
A part of the debt will be converted into equity, following which the stake of the lenders in the company will amount to 25%
Some lenders raised queries over the manner in which the process was carried out, saying that the resolution plan needed to have been
submitted at least 24 hours before the vote.
“As the RP (resolution professional) was present through an audio conference, it is not very
clear how he has certified the process was conducted in accordance with IBC (Insolvency and Bankruptcy Code) rules,” said one executive
“Also, the issue regarding the Rs 940 crore claim of the government’s mining department is not addressed in the resolution plan.”
Resolution professional Sumit Binani didn’t respond to queries
Another executive said the 270-day period within which a resolution plan needed to be agreed was coming to an end
Once this deadline expires, companies have to be liquidated.
