Liberty House has secured the approval of the Committee of Creditors (CoC) to acquire and revive Adhunik Metaliks’ integrated steel production operation at Chadrihariharpur near Rourkela in Odisha.
Adhunik’s CoC identified the resolution pitch submitted by Liberty House Group, part of Sanjeev Gupta’s global GFG Alliance, as the most competitive plan that takes into account the best recovery for lenders and also a ‘solid’ plan to revive and stabilise the company, said a statement. GFG executive chairman Sanjeev Gupta said, “We have important ambitions for India and approval to acquire Adhunik is a milestone on our path towards implementing our vision for sustainable steel production and downstream manufacturing in the country. Adhunik’s integrated operations, and supply linkages to downstream industry, especially to Amtek Auto, also recently approved for acquisition by Liberty House, will enable us to build this value chain progressively.”
The plant’s steelmaking capacity is capable of being expanded to 1 million metric tonnes per annum (mmtpa).
The statement added that the business employs almost a thousand people. Adhunik manufactures ferro alloys, billets, bars and rounds.
GFG is currently evaluating opportunities across its value chain and Liberty is participating in the insolvency resolution process for other significant assets in India which include ABG Shipyard, Castex Technologies, Metalyst Forgings, Amtek Ring Gear, all part of its integrated greensteel strategy, and its target to invest $ 5 billion in India.