Anil Agarwal-led Vedanta on Monday requested the National Company Law Appellate Tribunal (NCLAT) to vacate its May 1 order that said status quo be maintained with regard to the implementation of resolution plan for the debt-ridden Electrosteel Steels till further orders. Senior advocate C A Sundaram, appearing on behalf of Vedanta, said that the status quo was costing around Rs 1.9 crore daily to the lenders involved. He also said that the stay order was causing delay in getting various clearances required to complete the process.
The two-member NCLAT bench, led by its chairman justice S J Mukhopadhaya, was hearing a plea moved by Renaissance Steel (RSIPL) challenging National Company Law Tribunal’s April 17 order that quashed its objections on Vedanta’s eligibility under section 29 A of the IBC and approved Vedanta’s offer.
The appellate tribunal did not consider Vedanta’s appeal, but agreed on hearing the matter on a daily basis from here on. NCLAT had on May 17 admitted RSIPL’s petition challenging Vedanta’s eligibility. RSIPL had earlier submitted that one of Vedanta’s affiliates in Zambia — a unit of its UK-based parent Vedanta Resources —had been found guilty of criminal misconduct punishable with two or more years in jail. The resolution application of RSIPL was rejected by lenders to Electrosteel.
Vedanta’s counsel said that the company has offered to pay Rs 5,320 crore upfront to the lenders of the bankrupt steelmaker. In addition, it would offer financial creditors 7.5% equity in lieu of their debt, taking the total offer to Rs 6,148 crore. RSIPL had offered Rs 3,000 crore upfront payment and another Rs 4,404 crore payment at the end of the fifth year. Electrosteel owed Rs 13,000 crore to lenders, led by State Bank of India. Electrosteel Steels is among the 12 large stressed accounts identified by the Reserve Bank of India.