Binextindia :Tata Steel Mining Limited (TSML), a wholly owned subsidiary of Tata Steel has been declared as the successful resolution applicant by the creditors of Rohit Ferrotech limited.
In a regulatory filing Tata Steel said “Tata Steel Mining Limited (TSML) has been declared as the successful resolution applicant by the Committee of Creditors for acquisition of Rohit Ferro-Tech Limited (‘RFT’) on June 5, 2021, subject to it obtaining necessary regulatory approvals including approval from the National Company Law Tribunal ‘NCLT)”.
“TSML has accepted the Letter of Intent (LoI) for acquisition of RFT under the Corporate Insolvency Resolution Process (‘CIRP’) of the Insolvency and Bankruptcy Code 2016 (‘IBC’)” it added.
Rohit Ferrotech has a total installed capacity for ferro alloy is 2.74 lakh tonne and stainless steel of 1 lakh tonne. While the company has four plants, only 2 of them are currently operational. The Bishnupur unit for stainless steel is operational and the one at Jajpur for ferro alloy is operational at a capacity of about 50 percent. The company had reported a net loss of Rs. 686 crore for the financial year ended 31st March 2020. With this, the company’s accumulated consolidated net loss as on 31st March 2020 was Rs. 2521 crore.