Essar Steel Asia Holdings (ESAH), the holding company of Essar Steel, has approached the National Company Law Tribunal (NCLT) asking it be allowed to plead its case before any orders are passed. ESAH has filed a caveat petition in the NCLT Ahmedabad bench which has been hearing the insolvency case against the debt-laden company.
Legal experts said the promoters of Essar Steel were looking to convince the tribunal its proposal to pay Rs 54,389 crore, as a full settlement, should be taken cognizance of by the committee of creditors (CoC). On October 25, the CoC voted overwhelmingly in favour of a proposal by ArcelorMittal which has promised Rs 39,500 crore by way of cash upfront.
Section 12A of the Insolvency and Bankruptcy Code (IBC) introduced in 2018 by way of an amendment, allows for withdrawal of insolvency proceedings subject to approval by 90% of the creditors and NCLT. Read More
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