Bhubaneswar: Global mining and energy conglomerate Vedanta Limited on Friday announced the acquisition of Odisha based debt-ridden Ferro Alloys producer Ferro Alloys Corporation (FACOR).
FACOR owns a Ferro Chrome plant in Odisha’s Bhadrak district with capacity of 72,000 tonnes per annum (TPA). The company has two operational Chrome mines in Jajpur district and a 100 MW Captive Power Plant through its subsidiary, FPL.
“Pursuant to the order dated January 30, 2020 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 INR 10 Crores as well as equivalent of cash balance in FACOR’s subsidiary, FACOR Power Limited (FPL) as Upfront Payment and zero-coupon, secured and unlisted Non-Convertible Debentures of aggregate face value of INR 270 Crores to the Financial Creditors payable equally over 4 years commencing March 2021” Vedanta Said.
FACOR is likely to be a prized possession of Vedanta in view of its Chrome mines in Odisha’s mineral-rich Sukinda area.