Make this your homepage
Business News
Home > Business News
Stressed steel plants acquired via IBC seeing faster turnaround
Stressed steel plants acquired via IBC seeing faster turnaround

Mumbai, July 22 (TIWN) Stressed steel plants, acquired under the Insolvency and Bankruptcy Code (IBC) resolution process are seeing faster returns. Despite pandemic-linked blips, domestic demand outlook remains strong, which has helped acquirers ramp up utilisation levels.

In a report, ratings agency CRISIL says, "The ongoing steel upcycle will also mean stronger-than-expected realisations over the medium term. Consequently, acquirers may see about 20% faster payback and are well set to tap the brownfield potential housed under these assets."   This is as per a study by CRISIL of five stressed steel capacities, totalling 21 million tonnes (MT), which were acquired under National Company Law Tribunal (NCLT)-1, mostly by other primary steel producers. These assets accounted for 70% of total financial claims resolved or liquidated under IBC in the steel sector till 31 March 2021. The five steel producers include Bhushan Steel Ltd (renamed as Tata Steel BSL Ltd), Essar Steel Ltd (renamed as Arcelor Mittal Nippon Steel India Ltd), Electrosteel Steels Ltd (now ESL Steel Ltd), Monnet Ispat & Energy Ltd (now JSW Ispat Special Products Ltd ) and Bhushan Power & Steel Ltd. 

Add your Comment
Comments (0)

Special Articles

Saumen Sarkar Saumen Sarkar
Anirban Mitra Anirban Mitra