Kolkata, Nov 6 (PTI) TMT bar maker Shakambhari Group has claimed that its partnership firm Snaefell Heights LLP, which is in the fray to acquire Gontermann-Peipers (India) Ltd (GPIL), has plans to revive the insolvent entity as a going concern if the ailing company comes in its fold, an official said.
If acquired, the real-estate entity is expected to invest Rs 20-25 crore to turn around the ailing steel rolling product manufacturer, he said.
GPIL, a cast and forged roll maker, remained closed since 2016 and has a facility, spread over 24 acres of land, at Joka on the southern fringes of Kolkata.
“Some false impressions persist that Snaefell Heights looks to acquire the closed factory for real estate development. Srijan, a real estate developer, is a partner in Snaefell but it does not mean that the proposed acquisition is for realty development. We remain committed to revive the company as a going concern with plans for fresh investments of Rs 20-25 crore,” Shakambhari Group chairman and managing director Deepak Agarwal told PTI.
GPIL is under the corporate insolvency resolution process, and JSW Steel has also shown interest to acquire the sick company.
“We are hopeful that the asset will come to us. GPIL products are import substitutes. We had helped at least six steel companies turn around in the past. This acquisition will add to the strategic strength of our business. We are astonished that objections of JSW were raised after almost two months from the date of the auction in which we won with Rs 88 crore offer, and payment was made to conclude the resolution process,” he claimed.
The city-based Shakambhari group operates five steel plants and is now having an annual production capacity of 9 lakh tonne.
Agarwal also stated that “JSW had backed out from the corporate insolvency resolution process on an earlier occasion for the same asset”.
The National Company Law Appellate Tribunal (NCLAT) had fixed November 11 for a fresh auction for GPIL at a higher floor value of Rs 91 crore after JSW came into the fray to acquire the sick entity.
“We remain confident that our existing bid will be proved legally correct but if the re-bid goes ahead, we will participate again,” Agarwal said.
A senior JSW official alleged that “proper procedures were not followed in the auction of the asset as a going concern” and the group was seeking “a fresh auction for better value realisation” of the corporate debtor, GPIL.
The JSW official was confident that the fresh auction will happen and that they will participate in the exercise.
JSW Steel was planning for a rolling mill facility in West Bengal and eyeing at GPIL to fulfil its ambition. PTI BSM BDC BDC
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