INSUBCONTINENT EXCLUSIVE:
challenging the ArcelorMittal's resolution plan for bankrupt Essar Steel, which was approved on Friday.Three directors of the erstwhile
Essar Steel board approached the NCLAT and mentioned the matter before a two-member Bench headed by Chairman Justice SJ Mukhopadhaya
It may be taken up after the release of full written order by the NCLT Ahmedabad Bench.On Friday, the Ahmedabad Bench of the bankruptcy
court cleared ArcelorMittal's Rs 42,000 crore resolution plan for acquiring Essar Steel
It suggested to distribute the resolution amount in 85:15 ratio between financial and operational creditors.Essar Steel promoters, in an
effort to regain control over the 10 mtpa steel asset, had made a counter offer of Rs 54,389 crore, promising 100 per cent payment to all
types of creditors, after the committee of creditors (CoC) okayed ArcelorMittal's bid last October.The total claims admitted in Essar
Steel's resolution process is Rs 54,389 crore, comprising Rs 49,395 crore of financial creditors and Rs 4,995 crore of operational
But the NCLT rejected the offer citing Section 12A of the insolvency law."We continue to believe that our settlement proposal of Rs 54,389
crore is the most compelling one available to Essar Steel creditors and fulfils the IBC's declared overriding objective of value
maximisation, which has been established time and again by courts at all levels," an Essar spokesperson said after the Friday
judgment.Another party raising objections against the NCLT's approval is the Standard Chartered Bank that has a claim of Rs 3,487 crore
against insolvent Essar Steel
