@JindalSaw Limited through its subsidiary incorporated in USA, Jindal Tubular USA LLC has acquired the assets of US-based steel pipe maker @PSL_Limited-North America LLC through bankruptcy proceedings, the company said in a filing with exchange.
The transaction, expected to be completed on or prior to August 16, 2014, was subject to the outcome of voluntary petition for relief filed by PSL-North America LLC under Chapter 11 of Title 11 of the United State Code in the US Bankruptcy Court for District of Delaware including counter bids by various other bidders and possible objection by lender and creditors of PSL-North America LLC, the company added.
PSL-NA is a JV controlled by PSL Limited, an Indian company based in Mumbai, with Indian and American partners.
PSL Limited is India's largest producer / manufacturer of HSAW pipes, the line-pipe industry's preferred pipe, with production capacity in excess of the 1 MT mark. PSL itself had received a CDR package which involved the restructuring of all the term loans and repayments of working capital facilities but also provides for reduction in the interest on all the Loans.
PSL-North America LLC and PSL USA Inc., based in Bay St. Louis, Mississippi, each listed assets of more than $50 Mn and debt of about $130 Mn in Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Delaware on 16th July.
Read More: HERE
With a turnover of INR 70 Bn Jindal Saw, part of the $16.5 Bn OP Jindal Group has three strategic business units: large diameter pipes, seamless tubes, and DI (ductile iron) pipes.
The company had clocked revenues of INR 55 Bn with a PAT of INR 1.44 Bn.