The likelihood of National Company Law Tribunal rejecting or changing ArcelorMittal’s resolution plan for Essar Steel comes as a welcome relief for the operational creditors. Their grievance about playing second fiddle to the financial creditors is well justified.
The Delhi Pollution Control Committee (DPCC) on Wednesday said it has imposed environment damage charges of ₹1 lakh each on 765 industrial units found causing pollution, directly or indirectly, by engaging in scrapping activity in west Delhi’s Mayapuri.
Even as ArcelorMittal seems wary of the lack of a definitive and final word from the National Company Law Appellate Tribunal (NCLT) on how its bid amount of Rs 42,000 crore would be distributed among the creditors to Essar Stee
The National Company Law Appellate Tribunal (NCLAT) or the National Company Law Tribunal (NCLT) cannot force the Committee of Creditors (CoC) of Essar Steel India Limited to change the terms of the resolution plan after it has been approved under Section 3 of the Insolvency and Bankruptcy Code (IBC)
It is one of the tragedies of India that sooner than later, even the best of legislation is allowed to decay into irrelevance, thanks to endless litigation.
State Bank of India has done well to approach the Supreme Court to challenge the National Company Law Appellate Tribunal (NCLAT) asking the Committee of Creditors (CoC) to reconsider its decision in the Essar Steel matter so as to ensure that operational creditors
Lenders to Essar Steel have decided to move the Supreme Court in the event the National Company Law Appellate Tribunal pressures them to pay unsecured financial creditors more than they are inclined to.
The committee of creditors (CoC) in the Essar Steel insolvency case is likely to vote against higher payments to Standard Chartered, but may partly increase the amount operational creditors get as part of the settlement offered by ArcelorMittal, said people with knowledge of the matter.
Lenders to Essar Steel have decided to sweeten their offer to operational creditors of the bankrupt company by offering Rs 1,000 crore more from what ArcelorMittal has submitted as its resolution plan.
The lenders of Essar Steel on Wednesday told the National Company Law Appellate Tribunal (NCLAT) that a decision by the committee of creditors on whether Standard Chartered, an unsecured financial creditor of the bankrupt firm, should get higher payout for its dues from the Rs 42,000 crore coming from the resolution plan of ArcelorMittal, would come by Friday.