Tata Steel Mining, a wholly-owned subsidiary of Tata Steel, has emerged as the highest bidder for acquiring Rohit Ferro-Tech through insolvency-driven process.
The Committee of Creditors have approved the resolution plan submitted by the company on June 5 and it will now be placed before the National Company Law Tribunal.
TSML has accepted the Letter of Intent for acquisition of RFT under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016, the company said in a statement.
Rohit Ferro-Tech had defaulted on its outstanding loan of ₹1,792 crore in 2018. It was dragged to NCLT by State Bank of India.
Promoted by SK Patni, RFTL has ferro alloy production capacity of 2,74,583 mtpa at Bishnupur and Haldia in West Bengal and Jajpur in Odisha. The company is also setting up a 67 MW captive power plant at Jajpur unit to feed its energy requirements.
In an attempt to forward-integrate, RFTL has set up a 1,00,000 tonnes per annum stainless steel manufacturing facility at its Bishnupur unit.
It had acquired economic interest in coal mines in Indonesia securing thermal and coking coal requirements of its manufacturing facilities.
Of the four manufacturing units of the company, only the Bishnupur unit for stainless steel is operational while the Jajpur plant for ferro alloy is operating at 50 per cent capacity utilisation.
