Nuvoco Vistas Corp emerges as successful applicant for Vadraj Cement

Cement maker Nuvoco Vistas Corp Ltd on Monday sait it has emerged as the successful applicant for Vadraj Cement Ltd, which is currently undergoing corporate insolvency resolution process. The resolution plan submitted by Nuvoco has been approved by the Committee of Creditors (CoC), and a Letter of Intent (LOI) has been issued, Nuvoco Vistas Corp said in a statement. Without sharing the financial details, the company said the transaction will be implemented by Vanya Corporation Pvt Ltd, a wholly-owned subsidiary, and it intends to fund the transaction without a significant rise in its consolidated debt levels. VCL's existing facilities include a 3.5 MMTPA clinker unit in Kutch,Gujarat, and a 6 MMTPA grinding unit in Surat, Gujarat."Additionally, VCL owns high-quality limestone reserves, ensuring a consistent and sustainable supply of raw materials for future production. In February last year, NCLT admitted the insolvency process of Vadraj Cement Ltd (VCL) after Punjab National Bank (PNB) filed a plea over a default of over Rs 87.45 crore. According to media reports, Adani Group, JSW Cement and ArcelorMittal were in the race to buy VCL, which had a total debt of Rs 7,000 crore owed to various lenders such as Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of India, and Bank of Baroda, besides PNB. Earlier in August 2018, the Bombay High Court orderd winding up of Vadraj Cemnt following a case filded by trade credtior Benumer Technologies India.

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