The National Company Law Appellate Tribunal (NCLAT) asked UK-based Liberty House to deposit a total of Rs3,700mn ($51.92mn) as full and final settlement towards all financial creditors by Feb 14, 2020 in their takeover of Adhunik Metalliks and Zion Steel.
Liberty was to pay Rs4,100mn towards Adhunik’s financial creditors and Rs150mn towards that of Zion, according to Liberty’s resolution plan. The company has also agreed to pay Rs100mn as additional amount towards any and all contingencies arising from the resolution as a goodwill gesture.
Liberty had emerged as the highest bidder in acquisition of distressed alloy and speciality steel manufacturer Adhunik Metalliks and Zion Steel. The UK-based company had already paid Rs500mn for Adhunik and Rs50mn for Zion earlier.
Adhunik’s integrated steel plant at Sundergarh in Odisha has annual capacity of 0.45mn mt which is likely to increase to 1mn mt. It manufactures steel for the auto and engineering sectors. Zion Steel’s rolling mill has annual capacity of 0.12mn mt.