The National Company Law Appellate Tribunal (NCLAT) on Tuesday said it was likely to direct global steel major ArcelorMittal to deposit the bid amount of ₹42,000 crore for acquiring Essar Steel in separate accounts during the next hearing on 23 April.
A two-member bench headed by chairman justice S.J. Mukhopadhaya said ArcelorMittal may have to deposit the money in a separate account either before the NCLAT or NCLT Ahmedabad Bench.
The bench also asked ArcelorMittal to file an affidavit before it, detailing the steps to be taken for implementation of the resolution plan for debt-ridden Essar Steel.
“ArcelorMittal India, successful resolution applicant, would file an affidavit for implementation of plan,” the Bench said. “The appellate tribunal may direct the successful resolution applicant to deposit money in one or another account in the next date of hearing”.
The Bench also said that the original plan approved by NCLT Ahmedabad has to be implemented. It also directed operational creditors and financial creditors of Essar Steel to file a chart next week, detailing their claims approved by the resolution professional and the Committee of Creditors (CoC).
“Financial creditors and operational creditors are allowed to file one-page affidavit giving details of their claims approved by the RP and its percentage,” it said.
Moreover, it also asked the Gujarat state tax department to file an affidavit over its claims.
The NCLAT was hearing a batch of petitions filed by operational creditors, Gujarat state tax department and others.
ArcelorMittal’s resolution proposal for Essar Steel provides financial creditors ₹41,987 crore out of their total dues of ₹49,395 crore. Operational creditors, under the plan, would get just ₹214 crore against the outstanding ₹4,976 crore. They are contesting this before the NCLAT.
Essar Steel owns a 10-million-tonne steel mill at Hazira in Gujarat.
This was was among the first 12 cases selected by the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code (IBC).
Source: Livemint, April 10, 2019