The Firm successfully assisted and represented the Resolution Professional and the Monitoring Agency throughout the Corporate Insolvency Resolution Process of M/s Crest Steel and Power Pvt. Ltd. [CSPPL]
The team advised and acted initially for the Resolution Professional [“RP”] of CSPPL right from the inception of the CIRP, i.e. the Insolvency Commencement Date till its conclusion. i.e. approval of the resolution plan by the Adjudicating Authority. During the CIR period the Firm ably advised and represented the RP before the Adjudicating Authority as well as the Appellate Authority in several litigations, including seeking extension / exclusions of time / recovering receivables to CSPPL / defending claims filed against CSPPL by various stakeholders / labour disputes / disputes concerning railway siding / claims by Operational Creditors and Statutory Authorities.
As the RP’s counsel the Firm played a significant role in timely approval of the resolution plan by the Committee of Creditors and furnishing the same before the Adjudicating Authority. Post approval of the resolution plan by the Adjudicating Authority, the Firm acted as legal counsels for the Monitoring Agency, set up as per the approved resolution plan. While wearing the aforesaid hat, the Firm ably advised the Monitoring Agency at all times, not only in respect of the ongoing litigations but also towards successful and timely implementation of the resolution plan.
Significance of the matter:
Located in Durg, Chhattisgarh, CSPPL is an integrated steel plant with a current sponge iron capacity of 225 KTPA and steel billet capacity of 80 KTPA. CREST has over 400 acres of land and extensive room for brownfield expansion with a private railway siding, which has been identified as part of the planned growth capex projects. These include completion of the 1,500 KTPA iron ore pellet plant and near doubling of the manufacturing capacities for sponge iron and steel billet. Thus, CSPPL is one of the major regional players in the coal, billets manufacturing sector, with a recorded turnover of INR 500 crores during the CIR period for the F.Y. 2021-22. CSPPL had an admitted debt of INR 3575.78 crores. Under the approved resolution plan Nithia Capital (Nithia), a global advisory and investment firm, the Successful Resolution Applicant undertook to infuse a total amount in excess of INR 600 Crores (US$ 80Mn). This acquisition was completed in partnership with Amalgam Steel Private Limited (ASPL) with Nithia retaining majority control of the partnership.
The assistance provided by the Firm in successful resolution and implementation of the resolution plan was duly acknowledged and lauded by the RP in the 8thmeeting of the Monitoring Agency. The implementation of the resolution plan has been widely covered in media by the Banking and Finance Post, the Tribune, the Economic Times, amongst others…
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The team consisted of Partner Nakul Sachdeva and Managing Associates – Aakarshan Sahay, Damandeep S. Bhalla and Ms. Ambika P. Swain…