The earnings before interest, taxes, depreciation and amortisation (Ebitda) for Essar Steel India during its corporate insolvency resolution process that started from August 2017 is Rs 4,000 crore, the resolution professional of the company informed the National Company Law Appellate Tribunal (NCLAT).
Apart from the Rs 4,000 crore recorded during the insolvency process of over 600 days, the company has also accounted Rs 229 crore as Ebitda for March 2018, the appellate tribunal was said. The details are a part of an affidavit submitted by the resolution professional of the company to the NCLAT. Business Standard has seen a copy of the affidavit.
“This amount excludes Rs 734 crore Ebitda utilised for finance costs such as financial lease, letter of credit, bank guarantee charges to banks, and finance charges on payables to suppliers for maintaining the Essar Steel as a going concern,” the affidavit said. Figures from April 1 till date are, however, not available.
Essar Steel was admitted into insolvency on August 2, 2017 by the Ahmedabad bench of National Company Law Tribunal (NCLT), following which the lenders of the company approved an Rs 42,000 crore resolution plan by Lakshmi Narayan Mittal-led ArcelorMittal. The plan was also approved by the NCLT and later the NCLAT. The tribunal had, however, asked the Committee of Creditors to relook into the distribution of funds among the various creditors after operational and some financial creditors alleged discriminatory treatment at the hand of the lenders. During a hearing on May 16, the lenders told the NCLAT of the Rs 42,000 crore, only Rs 39,500 crore was meant for distribution among the various creditors. The remaining Rs 2,500 crore was kept as a minimum guarantee in the form of working capital for financial creditors of the company during the pendency of the corporate resolution process.
Though the implementation of ArcelorMittal’s resolution plan has not been stayed by the NCLAT, the distribution of funds among various creditors was stayed by the Supreme Court until further orders.
Source: Business Standards, May 20, 2019