NCLAT reserves order on ArcelorMittal takeover of Essar Steel


NCLAT reserves order on ArcelorMittal takeover of Essar Steel

An appellate tribunal has reserved a final order on appeals against Arcelor Mittal’s Rs 42,000 crore resolution plan for debt laden Essar Steel. A two-member bench of the National Company Law Appellate Tribunal (NCLAT) led by justice SJ Mukhopahdaya asked all parties to file final written submissions by Wednesday.

The NCLAT is hearing appeals against the acceptance of the resolution plan on multiple grounds including, discriminatory distribution among financial creditors, , alleged ineligibility of Arcelor Mittal and discriminatory treatment towards operational creditors.

Standard Chartered, has appealed against the resolution plan as it is set to receive Rs 60.7 crore or only 1.7% of its admitted claims under the current plan while other secured financial creditors are set to receive approximately 89% of their admitted claims. Read More

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