After braving tough legal challenges to emerge as the successful resolution applicant for Essar Steel, the worlds largest steel maker ArcelorMittal might now face a tough challenge to go ahead with the buyout of a fully integrated steel facility in India amidst falling steel power and bleak outlook for the sector.
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.
Global steel major ArcelorMittal Monday told the National Company Law Appellate Tribunal (NCLAT) that it would pay Rs 42,000 crore, including a minimum of guarantee of Rs 2,500 crore as working capital, for acquiring debt-laden Essar Steel under the insolvency process.
ArcelorMittal, which surpassed the one-time settlement offer of Essar promoters for 2×600 MW Mahan thermal power project in Madhya Pradesh, will submit its bid by April 22. The bid will then be opened for Essar to match the offer, bankers close to the development told FE.
In what may delay its plans to enter India, the Supreme Court on Friday halted ArcelorMittal from making Rs 42,000 crore payment to Essar Steel’s lenders, Bloomberg reported. The apex court also directed to maintain status quo with respect to the NCLT’s last order, the report added.
The committee of creditors (CoC) in the Essar Steel insolvency case is likely to vote against higher payments to Standard Chartered, but may partly increase the amount operational creditors get as part of the settlement offered by ArcelorMittal, said people with knowledge of the matter.
Essar Steel Committee of Creditors meet over distribution of ArcelorMittal Rs 42,000 crore, NCLAT to wait
The lenders of Essar Steel Wednesday informed the National Company Law Appellate Tribunal (NCLAT) that meeting of the Committee of Creditors of the debt-ridden firm is going on over distribution of Rs 42,000 crore coming from the resolution plan of global steel major ArcelorMittal.
In a victory of sorts, ArcelorMittal’s `42,000-crore resolution plan for the bankrupt Essar Steel received a conditional nod from the National Company Law Appellate Tribunal (NCLAT) on Monday.
ArcelorMittal’s Rs 42,000 crore resolution plan for takeover of bankrupt Essar Steel has received a final go ahead from NCLAT, TV news channels reported. The Lakshmi Mittal-run steel major has been asked by the tribunal to deposit the amount with the Committee of Creditors (CoC).
ArcelorMittal’s Rs 42,000 cr for Essar Steel: Distribute equitably among creditors, others, advises NCLAT
The National Company Law Tribunal (NCLT) has advised Essar Steel’s committee of creditors (CoC) and resolution professional (RP) to consider a judicious distribution of Rs 42,000 crore among financial creditors (FC) and other stakeholders as part of its ruling on the various petitions related to Essar Steel