Modern Steels Limited (BSE:513303) is in advanced discussions to sell its entire operations on a slump sale basis to ADV Partners, said two people aware of the talks. The transaction is expected to be worth INR 1.20-1.30 Billion and is likely to close this month, said the people cited above, requesting anonymity. Subsequently, the first two lenders sold their outstanding debt to Edelweiss Asset Reconstruction Company Limited's asset reconstruction arm. PNB still retains its exposure to the company. "The promoters are talking to two to three investors for a settlement, but ADV is ahead in the race," the first person said. "The lenders tried to get the case admitted under the Insolvency and Bankruptcy Code in 2018, but that has been held up because of delays in court. The company has been struggling for working capital and it owed about INR 4.00-odd Billion to banks when it was first declared an NPA. Even at the current sale value, lenders will have to take a significant haircut on their exposure." ADV Partners, Modern Steels and Edelweiss ARC did not respond to emailed queries.