Creditors of India's Monnet Ispat and Energy Ltd have approved a joint bid from AION Investments and JSW Steel to take over the bankrupt firm, according to a regulatory filing on Tuesday.
Monnet Ispat is among India's 12 biggest loan defaulters, which were pushed into bankruptcy last year, as part of the country's new bankruptcy law aimed at cutting close to $150 billion of accumulated soured loans.
Monnet Ispat's committee of creditors approved the resolution plan from AION Investments and JSW Steel by favourable votes of close to 99 percent, the company said in the stock exchange filing.
It did not provide any details of the takeover offer.
Monnet Ispat, which manufactures steel and is also involved in power generation, owes banks and other creditors 104.12 billion rupees $1.6 billion), according to government data.
Leading Indian steelmaker JSW Steel has also bid for another bankrupt steelmaker Essar SteelIndia in a partnership.
Creditors have so far finalised winning bidders for at least two other bankrupt steelmakers. Tata Steel is taking over Bhushan Steel, while Vedanta Ltd has won bids for Electrosteel Steels Ltd.