Essar promoters move NCLAT against Arcelor Mittal bid order

Essar promoters move NCLAT  against Arcelor Mittal bid order

New Delhi: Essar Steel promoters and the Standard Chartered Bank on Monday moved the National Company Law Appellate Tribunal (NCLAT) challenging the ArcelorMittal’s resolution plan for bankrupt Essar Steel, which was approved on Friday. Three directors of the erstwhile Essar Steel board approached the NCLAT and mentioned the matter before a two-member Bench headed by Chairman Justice SJ Mukhopadhaya. It may be taken up after the release of full written order by the NCLT Ahmedabad Bench.

On Friday, the Ahmedabad Bench of the bankruptcy court cleared ArcelorMittal's Rs 42,000 crore resolution plan for acquiring Essar Steel. It suggested to distribute the resolution amount in 85:15 ratio between financial and operational creditors. Essar Steel promoters, in an effort to regain control over the 10 mtpa steel asset, had made a counter offer of Rs 54,389 crore, promising 100 per cent payment to all types of creditors, after the committee of creditors (CoC) okayed ArcelorMittal’s bid last October. (IANS)

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