Standard Chartered Bank Tuesday slammed Essar Steel’s Committee of Creditors (CoC) for holding “secret” negotiations with ArcelorMittal, resulting in “illegality” that reduced bid amount and jeopardised its interest.
The National Company Law Appellate Tribunal (NCLAT) on Tuesday preponed its scheduled hearing over the resolution process of debt-ridden firm Essar Steel to May 7. The Committee of Creditors (CoC) of the company had moved an urgent plea to seek an early hearing in this matter.
The State Bank of India on Monday filed a recovery suit against Prashant and Ravi Ruia, before the Debt Recovery Tribunal (DRT) here in Gujarat. Essar Steel Lenders led by the SBI are saddled with dues of over Rs 63,000 crore, including overdue interest and penalties.
Essar Steel, which is undergoing debt resolution process, has posted EBITDA of around Rs 2,000 crore during the insolvency period and the amount could be utilised by financial creditors against their outstanding dues, one of the operational creditors has claimed.
Even as ArcelorMittal seems wary of the lack of a definitive and final word from the National Company Law Appellate Tribunal (NCLT) on how its bid amount of Rs 42,000 crore would be distributed among the creditors to Essar Stee
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.
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.
Lenders to Essar Steel have decided to sweeten their offer to operational creditors of the bankrupt company by offering Rs 1,000 crore more from what ArcelorMittal has submitted as its resolution plan.
The lenders of Essar Steel on Wednesday told the National Company Law Appellate Tribunal (NCLAT) that a decision by the committee of creditors on whether Standard Chartered, an unsecured financial creditor of the bankrupt firm, should get higher payout for its dues from the Rs 42,000 crore coming from the resolution plan of ArcelorMittal, would come by Friday.
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.