In 2020, the state-owned Central Bank of India had approached the Kolkata bench of the National Company Law Tribunal after MSP Metallics failed to repay its dues. However, in April last year, the company’s lead lender, SBI NSE -1.80 %, on behalf of the consortium, assigned the debt of the Jharsuguda-based 250,000 tonnes per annum steel plant to CFM Asset Reconstruction.

The dedicated bankruptcy court has approved a revival plan submitted by Orissa Metaliks (OMPL) for the integrated steel manufacturer MSP Metallics.In 2020, the state-owned Central 

Bank of India had approached the Kolkata bench of the National Company Law Tribunal after MSP Metallics failed to repay its dues. However, in April last year, the company’s lead lender, on behalf of the consortium, assigned the debt of the Jharsuguda-based 250,000 tonnes per annum steel plant to CFM Asset Reconstruction. “As per the CoC (committee of creditors), the plan meets the requirement of being viable and feasible for the revival of the corporate debtor (MSP Metallics),” the bench, presided by members Rohit Kapoor and Harish Chander Suri, said in a 32-page order on July 11. 

“As far as the question of granting time to comply with the statutory obligations/seeking sanctions from governmental authorities is concerned, the resolution applicant (OMPL) is directed to do the same within one year,” said the tribunal.

It said that the successful resolution plan proposes a financial outlay of ₹800 crore, which is way higher than the company’s average fair market value of ₹495 crore and liquidation value of ₹347 crore.