ArcelorMittal’s Rs 42,000-crore resolution plan for the debt-laden Essar Steel was on Friday approved by the Ahmedabad bench of the National Company Law Tribunal (NCLT). The promoters of Essar Steel, the Ruias, could appeal the ruling in the appellate tribunal or the Supreme Court.
The two-member bench suggested lenders give 15% of the proceeds to operational creditors, on a pro rata basis, leaving the decision entirely to their discretion. Claims by operational creditors have been rejected.
Essar Steel’s bankruptcy proceedings have long crossed the 270- day deadline prescribed by the Insolvency and Bankruptcy Code (IBC); in fact it is now more than two years since the process began. Read More
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