The Aion Capital-JSW Steel consortium, which last week emerged as the frontrunner to acquire bankrupt Monnet Ispat and Energy, has reportedly submitted a Rs 3,500-crore resolution plan that involves paying Rs 2,500 crore to lenders and an equity investment of Rs 1,000 crore, backed by a letter of comfort from ICICI Bank. The Rs 2,500-crore payment will be a one-time settlement for loans of Rs 10,000 crore, an effective haircut of 75%, under the proposal.
Monnet Ispat and Energy is a holding company. The company is engaged in the business of conducting coal mining operations and manufacturing coal-based sponge iron and various other steel/iron-based products.
