List out steps for implementation of Essar Steel resolution plan, NCLAT tells ArcelorMittal

List out steps for implementation of Essar Steel resolution plan, NCLAT tells ArcelorMittal

Aditi Singh

The National Company Law Appellate Tribunal (NCLAT) today directed ArcelorMittal to list out the steps for implementation of its Rs 42,000 crore resolution plan for Essar Steel.

The same has to be filed in the form of an affidavit, the Appellate Tribunal stated.

A two-member Bench of the NCLAT led by Chairperson Justice SJ Mukhopadhaya also said that it might direct ArcelorMittal to deposit the money promised in the resolution plan in a separate account, on the next date of hearing.

The NCLAT was hearing a batch of appeals moved against the approval of ArcelorMittal’s resolution plan for Essar Steel.

Reiterating that the Appellate Tribunal would not “set aside” the approval granted to ArcelorMittal, Justice Mukhopadhyay remarked that only “changes” with respect to the “discriminatory distribution” of money amongst creditors would be made.

The NCLAT has thus directed the financial creditors, operational creditors, and other intervenors in the appeal to submit the details of their claim made to the Resolution Professional and the amount/percentage approved in the resolution plan.

The Committee of Creditors for Essar Steel also informed the NCLAT that it has decided not to increase the share of money given to Standard Chartered as per the resolution plan.

Standard Chartered Bank had challenged that March 8 order of the NCLT, Ahmedabad Bench approving ArcelorMittal’s resolution plan for Essar Steel, on the grounds that the approval process adopted by the CoC was illegal and that the plan was discriminatory.

The three erstwhile Directors of Essar Steel – Prashant Ruia, Dilip Oommen, and Rajiv Bhatnagar – also moved the Appellate Tribunal against the approval of ArcelorMittal’s resolution plan.

NCLAT has already given a conditional nod to ArcelorMittal’s resolution plan for debt-ridden Essar Steel.

Senior Advocate Kapil Sibal appeared for Standard Chartered.

Senior Advocate Arun Kathpalia appeared for the lead banker SBI and a few other financial creditors of Essar Steel.

CoC was represented by Senior Advocate Ravi Kadam.

The matter will be heard next on April 23.

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