Essar Group: Former Essar Steel directors approach NCLAT against ArcelorMittal takeover–Economic Times

Standard Chartered Bank, the third-largest secured financial creditor of Essar SteelNSE 0.00 %, has decided to file an appeal before the National Company Law Appellate Tribunal (NCLAT) against the Ahmedabad bankruptcy court order that last week awarded the asset to ArcelorMittal at the end of marathon insolvency proceedings.

The bank’s appeal, of which ET has seen a copy, seeks the quashing of last Friday’s order at the National Company Law Tribunal (NCLT) that had approved the Rs 42,000-crore resolution plan by ArcelorMittal. The bank has also sought rejection of the plan.

Standard Chartered Bank declined to comment on the matter.

Standard Chartered said the implementation of the ArcelorMittal resolution plan would lead to a drastic reduction in its dues – at Rs 60 crore from Rs 3,487 crore.

Separately, Prashant Ruia, part of the Essar Steel promoter family and a director on the company’s suspended board, has decided to file an appeal at the NCLAT against the order. The appeal seeks a stay on the resolution plan.

Ruia hasn’t filed a formal appeal since a written copy of the NCLT Ahmedabad bench order of March 8 is yet to be obtained. But the intention to appeal was mentioned before a two-member bench, headed by Chairman Justice S J Mukhopadhaya. The bench asked it to be listed after the Ahmedabad NCLT posts its full written order.

Ruia has said the superseded board members should have been included in all creditor meetings that approved the resolution plan. The argument cites the recent apex court judgement in the Ruchi Soya case, where the judge had ruled that resolution plans be shared with the suspended board members of the company.

via Essar Group: Former Essar Steel directors approach NCLAT against ArcelorMittal takeover

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s