In pursuant to the order dated January 30 of National Company Law Tribunal Cuttack, Vedanta Limited is implementing the approved resolution plan for Ferro Alloys Corporation Limited (FACOR).
The consideration payable for the acquisition of FACOR on debt and cash-free basis under the approved resolution plan is Rs 10 crore as well as the equivalent of cash balance in FACOR’s subsidiary, FACOR Power Limited (FPL) as an upfront payment and zero-coupon, secured and unlisted Non-Convertible Debentures of the aggregate face value of Rs 270 crore to the financial creditors payable equally over 4 years commencing March 2021.
Vedanta Limited will acquire management control and as per the approved resolution plan, it will hold 100 per cent of the paid-up capital of FACOR. Ferro Alloys Corporation has a strong presence in the business of producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 72,000 TPA, two operational Chrome mines and 100 MW of Captive Power Plant through its subsidiary, FACOR Power Limited (FPL). The chrome plant and the mines are located in Orissa. The turnover in FY 2019 was Rs 580 crore.
