Essar Steel: Upset with NCLAT, banks to move court


Essar Steel: Upset with NCLAT, banks to move court

Lenders to Essar Steel have decided to move the Supreme Court in the event the National Company Law Appellate Tribunal pressures them to pay unsecured financial creditors more than they are inclined to.

“It is unfair that CoC (committee of creditors) be repeatedly asked to reconsider commercial decisions which we have taken with all stakeholders’ interest in mind and which, most importantly, has already been approved by the tribunal,” a banker with a state-owned lender said. Banks could approach SC before April 9 with a plea that proceedings in the Essar Steel case be expedited.

The NCLAT has directed lenders to consider a higher payout to unsecured financial creditor Standard Chartered. As of now, the foreign bank is set to receive only Rs 60.71 crore or 1.7% of the admitted claims under the approved ArcelorMittal resolution plan. Read More

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