Ruias may go to court on offer for Essar Steel by ArcelorMittal - Report
Financial Express, citing , persons close to the Ruias, reported that Ruias, who have offered to pay INR 54,389 crore to clear their dues to the lenders of Essar Steel, are likely to challenge the resolution plan submitted by ArcelorMittal and that an intervention petition may be filed with the National Company Law Tribunal (NCLT). The persons said the Ruias would, in all probability, file an objection with the tribunal latest by Tuesday to intervene and object against the resolution professional’s submission of the ArcelorMittal resolution plan for the NCLT’s approval.
The persons said they were yet to hear from the CoC on the offer submitted by the Ruias to them last week. Last week, the Ruias offered an upfront cash payment of INR 47,507 crore to all creditors, including payment of INR 45,559 crore to the senior secured financial creditors under Section 12A of the Insolvency and Bankruptcy Code (IBC) introduced in 2018 by way of an amendment.
The clause allows withdrawal of insolvency proceedings subject to approval by 90% of the creditors and NCLT.
Late last week, the committee of creditors (CoC) accepted an offer by ArcelorMittal which was subsequently submitted by the resolution professional for Essar Steel to NCLT for approval.
ArcelorMittal’s resolution plan for Essar Steel also faces another legal hurdle in the form of a caveat petition filed by Standard Chartered Bank in the ongoing insolvency case in its role as a dissenting financial creditor. The caveat, filed on Friday, according to media reports will ensure that no decision is passed on the resolution plan until Standard Chartered is heard by the tribunal. Various senior bankers had indicated to FE that Standard Chartered had voted against the Arcelor Mittal resolution plan last week.
Source : Financial Express