Finally the long drawn insolvency case of Essar Steel got concluded with Ahmedabad bench of NCLT clearing ArcelorMittal’s INR 42,000 crore resolution plan for Essar Steel takeover today.
In its judgment, NCLT said that it cannot impose ‘judicial view’ on the lender’s choice – Arcelor Mittal. However, it has asked Committee of Creditors (CoC) to reconsider distribution of dues, NCLT has suggested the lenders give 15 percent of the total offer to operational creditors.
The NCLT had added that INR 54,389-crore offer by the company’s original promoters, Ruias, which is much higher than the ArcelorMittal’s INR 42,000 crore bid, is not maintainable as the only way to make a proposal is through Section 12A.
With this takeover, the world’s largest steelmaker, Arcelor Mittal will mark its entry in Indian steel circuit. Essar Steel has a 10 MnT capacity plant in Gujrat, India.
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