New Delhi: A day after ArcelorMittal castigated corporate rivals for trying to sabotage its takeover bid of insolvent Essar Steel, the Essar Group, which is now interested in getting back the debt-laden steel company, shot back saying the objective of Insolvency and Bankruptcy Code (IBC) is maximisation of recovery for creditors and that their bid is higher by Rs 12,000 crore.
“The proposal made by Essar Steel shareholders provides for payment of a total of Rs 54,389 crore to various creditors, which exceeds the resolution plan currently approved by the creditors by more than Rs 12,000 crore,” the Group led by the Ruias said in a statement.
It said the proposal was submitted under recently introduced Section 12A of the IBC. Under the proposal made by the shareholders of the bankrupt company, all classes of creditors would receive full recovery of their claims, it said.
“The overriding objective of the IBC is maximisation of recovery for creditors and this has been established time and again by courts at all levels. Creditors of Essar Steel, including operational creditors, should not be forced to accept a resolution plan which undervalues the company and its assets,” it said. (IANS)
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