“Electrosteel Steels Ltd. has become the first of the twelve large stressed accounts to be resolved under the Insolvency and Bankruptcy Code. The National Company Law Tribunal has approved the resolution plan submitted by Vedanta for Electrosteel Steels,” reported the Bloomberg Quint.

Khaitan & Co partner Kolkata partner Mehul Shah was instructed by Vedanta resources head legal Jasmeet Wadehra who briefed senior advocates Joy Saha and Siddharth Mitra for Vedanta.

Shardul Amarchand Mangaldas partner Sapan Gupta instructed advocate SK Kapoor for Dhaivat Anjaria, the resolution professional in the case.

Electrosteel Steels was among the first 12 large corporate accounts that the Reserve Bank of India identified in June last year for insolvency resolution. It owes lenders more than Rs 13,000 crore, including around Rs 5,000 crore to State Bank of India, and also owes Rs 191.6 crore to operational creditors, according to the Bloomberg report.

“Lenders have taken a 55 percent haircut on the outstanding debt, said the person quoted above while speaking on condition of anonymity. Vedanta had emerged the highest bidder after quoting Rs 4,500 crore for the steelmaker”, the report added.