By LE Desk
New Delhi, June 8, 2021: Ferro alloys and stainless steel manufacturer Rohit Ferro-Tech’s (RFTL) resolution professional has filed the resolution plan of Tata Steel subsidiary Tata Steel Mining, which was approved by the lenders, with the National Company Law Tribunal (NCLT) for its approval.
The committee of creditors (CoC) approved the Tata Steel Mining resolution plan last Saturday with the requisite majority, the Financial Express reported.
In February 2020, the NCLT’s Kolkata bench admitted the State Bank of India’s petition to initiate the Corporate Insolvency Resolution Process against RFTL under Section 7 of the Insolvency and Bankruptcy Code.
“… the Resolution Professional has filed the Resolution Plan (as approved by the CoC on June 5), with the National Company Law Tribunal, Kolkata Bench on June 7, 2021 for its subsequent approval thereupon,” a stock exchange filing said.
The company made a loss of Rs 679.36 crore for FY20, while revenue from operations stood at Rs 738.35 crore. Its manufacturing units/ divisions are at Bishnupur and Haldia in West Bengal and Jajpur in Odisha.
The lenders to the insolvent company include State Bank of India, Punjab National Bank, Bank of Baroda, Uco Bank, Canara Bank and Exim Bank, according to its latest annual report.
Tata Steel Mining is a subsidiary of Tata Steel headquartered in Bhubaneswar. The company works to develop commercial mining opportunities in addition to ferro alloys business.