ArcelorMittal may not get their hands on Essar Steel so easily.
Operational creditors of the insolvent firm have moved the National Company Law Tribunal saying that resolution plan accepted by the Committee of Creditors doesn’t take their dues into consideration. In two separate petitions filed at the Ahmedabad bench of the NCLT, a total of 28 operational creditors have asked the tribunal for staying further resolution proceedings till their grievances are addressed.
The first petition, moved by 27 operational creditors, has asked the tribunal to direct the committee of creditors to ensure full payment to the them and take necessary steps to modify ArcelorMittal’s resolution plan for that. Alternatively, it has asked the tribunal to direct the lenders to also consider the Ruia family’s last-minute offer that promises to repay all creditors fully.
The second petition, filed by Orissa Stevedores Ltd. that is owed 20.46 crore, has also made a similar demand while also asking the commitee of creditors to provide a copy of ArcelorMittal’s resolution plan.
The 27 operational creditors have submitted that ArcelorMittal’s resolution plan “provides no payment to operational creditors with outstanding dues of an amount more than Rs 1 crore”. They said that under the Insolvency and Bankruptcy Code operational creditors “can’t be treated differentially, inequitably and unfairly as compared to the other financial creditors”.
The petition added that operational creditors are only recovering Rs 196 crore under ArcelorMittal’s plan when their total admitted claims go up to as much as Rs 4,976 crore.