Stemcor Holdings’s effort to divest its stakes in India subsidiaries might get delayed inordinately, even beyond the reported December deadline to conclude the deal and repay lenders.
The Calcutta High Court has decided to continue its September injunction on sale of Indian assets in a case filed by lender ICICI Bank. The court has also ordered the parties to file affidavit-in-opposition by end-November. The case would be heard again on December 6.
The court on September 19 had restrained Stemcor India from selling stake in its domestic arms, Aryan Mining & Trading Corp and Brahmani River Pellets, that operate an iron ore mine and a pellet plant respectively.
ICICI Bank, which had lent Rs 587 crore to Stemcor India, has sought that the latter should not dispose of assets that were pledged as securities.
The existing injunction “should not prevent the global restructuring of the Stemcor Group but at the same time the Stemcor Group should not dilute its undertaking... in terms of the several guarantees”, Judge Soumen Sen said on October 7.
A Stemcor statement in September said that it is discussing restructuring with lenders regarding a $1.25 billion syndicated loan and that it expects to finalise its restructuring, refinancing and repayment by the year-end.
Tata Steel, AV Birla group, Vedanta and other metals and mining majors are believed to be interested in buying Stemcor’s assets.