ArcelorMittal’s Rs 42,000 crore resolution plan for takeover of bankrupt Essar Steel has received a final go ahead from NCLAT, TV news channels reported. The Lakshmi Mittal-run steel major has been asked by the tribunal to deposit the amount with the Committee of Creditors (CoC). The NCLAT refused to put on hold ArcelorMittal’s proposed payment to Essar Steel’s lenders, clearing the NCLT, Ahmedabad-approved resolution plan for one of the biggest IBC cases in India.
On Friday, NCLAT had refused to stay a bankruptcy court order approving steel giant ArcelorMittal’s bid for Essar Steel. It had sought a fresh plan for the distribution of bid amount between financial and operational creditors of the debt-laden firm.
The next hearing in the Essar Steel Case is scheduled on March 27, the TV reports said.
Edelweiss ARC, State Bank of India, IDBI Bank and ICICI Bank are the four creditors with the largest exposures to the debt-ridden firm, taking the call on the lenders’ behalf.
Essar Steel directors had challenged NCLT’s nod to global steel giant for the debt-laden company on the plea that their offer of Rs 54,389-crore was superior as it clears 100 per cent outstanding of both financial and operational creditors.
On March 8, the National Company Law Tribunal approved the Rs 42,000-crore winning bid by ArcelorMittal after months and months of hearings, counter-hearings and petitions.
The Essar Steel case is one of the 12 large cases admitted early on under the newly formed Insolvency and Bankruptcy Code (IBC).
Source: Financial Express, March 18, 2019