The State Bank of India-led committee of creditors (CoC) of the debt-laden Essar Steel on Friday approached the Supreme Court, challenging last week’s National Company Law Appellate Tribunal (NCLAT) order that reduced its share of the sale proceeds from 90% to 60%, apart from putting the operational creditors at par with financial creditors in terms of settlement of claims.
The CoC said that this decision would discourage banks from initiating insolvency proceedings against any defaulting company. This decision means that the financial creditors would have to take a bigger loss on their outstanding dues and this is not in public interest, it added.
While approving ArcelorMittal’s Rs 42,000-crore offer for Essar Steel, the NCLAT had on last Thursday modified a resolution plan cleared by the CoC, holding that the secured creditors including SBI Read more
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