Essar Steel: NCLT defers operational creditors' plea to Dec 10
The National Company Law Tribunal (NCLT) here Wednesday deferred hearing to December 10 on petitions filed by close to 30 operational creditors of Essar Steel seeking settlement of their dues from ArcelorMittal.
Harihar Prakash Chaturvedi, a member on the Ahmedabad bench of the NCLT, deferred the hearing on the petitions to December 10 citing the absence of the other member, Manorama Kumari for the stated hearing.
As many as 28 operational creditors of Essar Steel are seeking settlement of their dues running into over Rs 600 crore.
Some of these creditors who have moved the NCLT are Apex Commodities, Sakar Industries, Kamaljeet Singh Ahluwalia, Ideal Movers, and Arfin India.
The insolvency court also deferred the hearing on a petition filed by Essar Steel seeking validity of its revised offer under the Insolvency and Bankruptcy Code (IBC) to pay off creditors, to December 10.
The resolution professional of Essar Steel had submitted a proposal to settle Rs 54,389 crore to the committee of creditors (CoC), led by State Bank of India.
These operational creditors have moved the NCLT against the resolution plan offered by the world's largest alloy maker ArcelorMittal as it denies those operational creditors with over Rs 1 crore dues any settlement.
As per resolution plan submitted by ArcelorMittal, Rs 42,000 crore will be paid to the secured lenders, while an additional Rs 8,000 crore will be kept for capital expenditure.
Challenging the ArcelorMittal bid on November 26, multinational lender StanChart has also gone to the NCLT as it the offer it only under two percent of its close to Rs 3,000 crore of exposure to the company from ArcelorMittal.
In October, the British lender had filed a caveat to ensure that no the secured creditors will not take any decision on the ArcelorMittal bid to the NCLT, before it is heard by the tribunal. But finally over 90 percent of the lenders CoC had voted in favour of ArcelorMittal which has promised Rs 39,500 crore cash up-front and rest of the Rs 42,000 crore will go to operational creditors and working capital.
StanChart also wants the Rs 42,000-crore bid to be distributed among the secured financial creditors on a pro- rata basis based on the amount of admitted claims or principal amount along with directions that StanChart gets its pro rata share of Rs 2,983.98 crore or at least Rs 2,646.05 crore along with its share of the closing adjustment.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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