New Delhi: JSW Steel's bid to acquire Asian Colour Coated Ispat, which has debts of Rs 4,900 crore and is undergoing insolvency proceedings, has got a nod from 80 percent of bankers. This means that JSW has cleared another hurdle on way to acquiring the debt-ridden firm.
"The voting was done on Friday night," an executive from the industry said.
JSW Steel has offered to pay a Rs 1,525 crores up front to the lenders, along with Rs 25 crore to operations creditors.
Although JSW Steel has refrained from commenting on the matter, sources said that an announcement confirming the same is likely to be made next week.
With an annual capacity of one million tonne, Asian Colour Coated Ispat specialises in downstream, galvanised and colour coated products. It has manufacturing facilities close to Delhi and Mumbai, and exports its products to Europe, Latin America and Africa.
The main lenders to the company include State Bank of India, Bank of Baroda and IDBI Bank.