The stage is set for another round of legal battle, with operational creditors of Essar Steel planning to move the National Company Law Tribunal (NCLT) this week, seeking Rs 49.95-billion dues from the company. The operational creditors include several central- and state-owned government entities.
ArcelorMittal, which has emerged the highest bidder for the company, has not included operational creditors in its debt resolution plan submitted to the committee of creditors (CoC), which has made the operational creditors wary about recovering their dues from the company.
On October 25, the CoC had approved a plan by ArcelorMittal, which had offered Rs 420 billion upfront cash to the lenders as against Rs 490 billion of Essar Steel’s dues to banks. But ArcelorMittal’s plan offers Rs 2.14 billion to operational creditors, against Rs 49.95 billion of claims filed by them. Read more
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