Construction Industry News
Sagar Cements is the frontrunner to acquire Andhra Cements, a Jaypee Group company undergoing insolvency proceedings, according to an Economic Times report citing unnamed sources.
Andhra Cements backers have received expressions of interest from Sagar Cements, B C Jindal's Jindal Poly Films, Dalmia Cement (Bharat) Ltd and Khandwala Finstock Pvt Ltd, according to a stock exchange disclosure.
Hyderabad-based asset reconstruction company Pridhvi Asset Reconstruction and Securitization Company (Paras) has an 86% share of verified debt in Andhra Cements, while Union Bank of India and State Bank of India have approximately 11% and 3% respectively. to have. Through this bankruptcy resolution, lenders hope to recover about 40-45% of their claims.
Since Andhra Cements is publicly traded, Sagar Cements should first make an open offer to the public immediately after purchasing 25% of the equity. Second, it would be liable to pay the full government and trade creditors' dues.
After Paras acquired most of the debt, he was able to check all the resolutions passed by the creditors' committee. In insolvency proceedings, a critical resolution can only be passed if 66% of the creditors, measured by the value of the debt, vote in favor of the resolution.
According to the latest annual report, Sagar Cements had a production capacity of 8.25 tons per year (mtpa) at the end of March 2022.
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