Essar Steel: Lenders may take a Rs 20,000 crore hit


Essar Steel: Lenders may take a Rs 20,000 crore hit

ArcelorMittal’s `42,000-crore resolution plan for Essar Steel was on Thursday approved by the National Company Law Appellate Tribunal (NCLAT), but lenders are staring at a `20,000-crore hit after the appellate tribunal said operational creditors be given 60.7% of their admitted claims.

The lenders are expected to challenge the decision on the distribution of funds in the Supreme Court. The erstwhile promoters — the Ruias — who had challenged the eligibility of ArcelorMittal under Section 29(A) of the Insolvency and Bankruptcy Code (IBC), which bars promoters of defaulting firms from bidding for stressed assets, are also likely to move the SC next week challenging the tribunal’s decision. Read More

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