NCLAT may ask ArcelorMittal to deposit ₹42,000 cr: Essar Steel Case

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NCLAT may ask ArcelorMittal to deposit ₹42,000 cr

NCLAT may ask ArcelorMittal to deposit ₹42,000 cr- The National Company Law Tribunal (NCLT) has asked the bidder Arcelor Mittal for the tensioned Essar steel property or the 42,000- Crore bid amount or the National Company Law Tribunal’ s Ahmedabad. The next hearing in the case will be on April 23. The two members Bench headed by Chairman Justice SJ Mukhopadhyay also directed Arcelor Mittal to file an affidavit with the details on the steps being taken to implement the authorized resolution plan for the revival of ESSAR  Steel.

NCLAT may ask ArcelorMittal to deposit ₹42,000 cr

Stating that ArcelorMittal has not deposited the money despite clear instruction, NCLT said that the company will soon be compelled to comply. Agreeing to bring in money, ArcelorMittal claimed that the reluctance of the lenders to execute the debt assignment agreement. ArcelorMittal said, “without the debt” the money cannot be deposited in favor of the company.

Additional Allocation

The Bench also ordered the committee of creditors (CoC) to submit details on the outcome of a meeting organized to consider additional allocation for operational creditors. At this previous, guided by the NCLT, The CoC had agreed to increase the payment to operational creditors from 200 Crore to 200 Cr.

However, the lenders refused to consider the Standard Chartered Bank as a financial creditor, which resulted in a higher payment to the UK-headquartered bank.

Essar Steel Case: NCLAT may ask ArcelorMittal to deposit ₹42,000 cr

Under the resolution plan presented by ArcelorMittal, financial creditors will receive approximately 42,000 crores of their total outstanding dues of `49,395 crores, while operational creditors will get only 214 million rupees against their outstanding, 9 47676 crores.

NCLAT instructed both financial and operational creditors to furnish details on their approved claims while giving a copy of the approved ArcelorMittal Resolution Scheme to promoters of Essar Steel. For the latest news, you can visit www.indiatimelines.com.

It was one of the first 12 cases selected by the Reserve Bank of India for bankruptcy under bankruptcy and the Code of Bankruptcy (IBC).

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