INSUBCONTINENT EXCLUSIVE:
MUMBAI: Standard Chartered Bank has opened a credit line of Rs 3,500 crore for Vedanta to help finance the purchase of Electrosteel, the
second biggest bad loans resolution under the Insolvency and Bankruptcy Code (IBC).
The loan is for 10 years and Vedanta has given a
guarantee, two people familiar with the matter told ET
ofabout 26 lenders that had lent more than Rs 14,000 crore to the insolvent Kolkata-based steelmaker
resolution professional who was involved in one of the large recoveries.
In April, Vedanta was officially declared the successful bidder for
In June, the acquisition process was completed, with the new management taking control
India presence, like Standard Chartered, find the IBC an opportunity to extend corporate lending as local banks are seen averse to loaning
has decided to delist Electrosteel
Even the National Company Law Appellate Tribunal (NCLAT) three weeks ago refused to stay the delisting of Electrosteel Steel shares by its
new promoter.
Vedanta Star Ltd, a wholly-owned subsidiary of Vedanta Ltd, intended to make a delisting offer to the existing shareholders of
Electrosteel, proposing an equivalent exit price of Rs 9.54 per share.
