MUMBAI: Bankers and metals maker Monnet Ispat & Energy agreed on Tuesday to reorganise the company under the Insolvency and Bankruptcy Code after it defaulted on its Rs. 12,000 crore even as its equity valuation remained less than a 12th of its total obligations to banks.
But the agreement gave a sense of hope to equity investors that a resolution may be just around the corner and pushed its stock as high as 20%, giving it a market valuation of Rs. 706 crores.
Unlike many other companies such Essar Steel Ltd., lenders already own more than half of the company that would make it a lot easier to push reorganisation, said bankers who did not want to be identified. Speculation is rife that Sajjan Jindal owned JSW Steel may acquir…
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