The National Company Law Appellate Tribunal (NCLAT) on Tuesday granted a week more to NCLT Ahmedabad to decide over the `42,000-crore resolution plan submitted by ArcelorMittal for the bankrupt Essar Steel. A two-member bench headed by Justice SJ Mukhopadhaya has directed the Ahmedabad bench of the NCLT to decide the matter by February 19.
During the hearing, NCLAT was informed that Ahmedabad bench has completed hearing on operational creditors’ plea and is scheduled to hear suspended Essar directors later in the day on Tuesday.
Earlier on February 4, the NCLAT asked NCLT to decide by February 11, failing which it would call records and pass order. The NCLAT direction came while hearing an application filed by ArcelorMittal, whose Rs 42,000-crore takeover proposal of the indebted steel-maker has been approved by the committee of creditors (CoC) and is pending before the NCLT for approval.
Earlier, on January 29, NCLT Ahmedabad rejected the debt settlement proposal put forth by the shareholders of Essar Steel saying the offer violates Section 12A of the Insolvency and Bankruptcy Code.
The NCLT had said that `54,389-crore offer by Essar Steel Asia Holding, which is much higher than the ArcelorMittal’s `42,000 crore bid, is not maintainable as the only way to make a proposal is through Section 12A.
On Monday, the Supreme Court had rejected the plea of around 31 operational creditors of Essar Steel that they be individually allowed to represent their case in the NCLT. The SC said that only one representative of their’s can put forward the case. The operational creditors feel that either ArcelorMittal should be asked to improve their offer with regard to payments to them or Essar Steel promoters offer should be accepted as they have offered them full payment.
Source: Financial Express, February 13,2019