This was was among the first 12 cases selected by the Reserve Bank of India to be resolved under the Insolvency and Bankruptcy Code (IBC).
The National Company Law Appellate Tribunal Tuesday said it may direct global steel major ArcelorMittal to deposit Rs 42,000 crore bid amount for acquiring Essar Steel in separate accounts during next hearing on April 23. A two-member bench headed by Chairman Justice S J Mukhopadhaya said that ArcelorMittal may have to deposit the money in a separate account either before the NCLAT or NCLT Ahmedabad-bench.
The bench also asked ArcelorMittal to file an affidavit before it, detailing the steps to be taken for implementation of the resolution plan of debt ridden Essar Steel. “ArcelorMittal India, successful resolution applicant, would file an affidavit for implementation of plan,” the bench said.
It further said, “The Appellate Tribunal may direct the successful resolution applicant to deposit money in one or another account in next date of hearing”. The bench also said that original plan approved by NCLT Ahmedabad has to be implemented. The bench also directed the operational creditors and financial creditors of Essar Steel to file a chart next week, detailing their claims approved by resolution professional and CoC.
“Financial creditors and operational creditors are allowed to file one page affidavit giving details of their claims approved by RP and its percentage,” it said. Moreover, it has also asked the Gujarat State Tax department to file an affidavit over its claims. The NCLAT was hearing a batch of petitions filed by operational creditors, Gujarat State Tax department and others. ArcelorMittal’s resolution proposal provides financial creditors Rs 41,987 crore out of their total dues of Rs 49,395 crore.
Operational creditors, under the plan, would get just Rs 214 crore against the outstanding of Rs 4,976 crore and are contesting before the NCLAT. Essar Steel owns a 10-million-tonne steel mill at Hazira in Gujarat. This was was among the first 12 cases selected by the Reserve Bank of India to be resolved under the Insolvency and Bankruptcy Code (IBC).