Electrosteel case first resolution under IBC as NCLT approves Vedanta bid

The NCLT’s Kolkata bench has ordered that Vedanta’s resolution plan be implemented with immediate effect.

The National Company Law Tribunal’s (NCLT) Kolkata bench approved Vedanta Ltd’s resolution plan for the insolvent Electrosteel Steels Ltd, making it the first of the twelve defaulters on RBI’s list of stressed accounts to be resolved under the Insolvency and Bankruptcy Code, 2016.

Electrosteel Castings office building in Camac Street, Kolkata. (Indranil Bhoumik/Mint)

During the insolvency proceedings, the debt-laden company’s resolution professional (RP) had submitted Vedanta’s resolution plan before the bench for a final disposal after lenders declared it a “successful resolution applicant”.

“The approved (by Committee of Creditors) resolution plan shall come into force with immediate effect,” the order said.

Vedanta informed stock exchanges that it was declared “successful resolution applicant” under the insolvency process, and had received the Letter of Intent. The company also said it had accepted the terms outlined in it.