Essar Steel lenders see no major changes to resolution proposal
5 years, 8 months ago

Essar Steel lenders see no major changes to resolution proposal

Live Mint  

Mumbai: Despite the Supreme Court imposing status quo on the Essar Steel Ltd insolvency case, financial lenders to the stressed steel mill believe they will not have to make any major changes to the current resolution plan. “If you look at the NCLT Ahmedabad offer, the court advised the CoC and Essar Steel’s resolution professional to consider changes to the resolution plan and take an appropriate decision. The two parties opposed to the current resolution plan are Standard Chartered Bank and Essar Steel’s operational creditors. With regard to the 85:15 split, the NCLT Ahmedabad used the word “consider”: It doesn’t have binding value but it certainly carries some weight and puts pressure on the CoC to alter the plan.” “Essar Steel has paid out nearly ₹55,000 crore to its operational creditors over the last two years as part of business expenses,” the second member on the Essar Steel CoC said. I don’t think a case can be made that lenders are benefiting unduly from the resolution at the expense of operational creditors.” Another lawyer representing one of the creditors said Standard Chartered’s guarantee by Essar Steel cannot be treated on par with those of the company’s own secured lenders.

Court Resolution Operational Changes Case Steel Plan Crore Nclat Coc Creditors Standard Chartered Operational Creditors Essar Essar Steel  plan  changes  essar  coc  case  major  steel  crore  court  resolution  operational  proposal  creditors  lenders

History of this topic

SC nod for ArcellorMittal Nippon Steel, IOCL to appoint arbitrators in Essar case
10 months, 4 weeks ago

SC nod for ArcellorMittal Nippon Steel, IOCL to appoint arbitrators in Essar case

Hindustan Times  

The Supreme Court on Monday cleared the decks for the initiation of arbitration proceedings by Arcelor Mittal Nippon Steel India Limited and Indian Oil Corporation Ltd for resolving their dispute relating to Essar Steel India Limited. In view of the agreement of the parties, the Delhi high court’s judgment dated October 10, 2023, is rendered infructuous,” stated the bench, which …

Weekly Digest Of IBC Cases: 13th To 19th November 2023
1 year, 1 month ago

Weekly Digest Of IBC Cases: 13th To 19th November 2023

Live Law  

NCLAT Case Title: Patsons Construction v Shri Ram Ratan Kanoongo Case No. 1269 of 2022 The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan, Shri Barun Mitra and Shri Arun Baroka, has set aside a direction passed by the NCLT requiring a creditor to pay usage charges of a machine to the Corporate Debtor in absence …

Arcelormittal’s Resolution Plan For Essar Steel, A Creditor Files Recall Application ; NCLT Ahmedabad Issues Notice
1 year, 1 month ago

Arcelormittal’s Resolution Plan For Essar Steel, A Creditor Files Recall Application ; NCLT Ahmedabad Issues Notice

Live Law  

The National Company Law Tribunal, Ahmedabad Bench, comprising of Shri Shammi Khan and Dr. Velamur G Venkata Chalapathy, has issued notice in an application seeking recall of the order dated 08.03.2019 whereby the resolution plan of ArcelorMittal India Pvt. The Applicants are creditors of Essar Steels India Ltd., who have alleged that the plan approval order was obtained by casting …

Will Arbitral Award-Holder's Claim Be Extinguished On Approval Of Award-Debtor's Resolution Plan Under IBC? Yes, Rules Calcutta High Court
3 years, 8 months ago

Will Arbitral Award-Holder's Claim Be Extinguished On Approval Of Award-Debtor's Resolution Plan Under IBC? Yes, Rules Calcutta High Court

Live Law  

On Friday, the Calcutta High Court settled an important question of arbitration law, viz., whether an arbitral award-holder's claim would stand extinguished upon the approval of a Resolution Plan for the award-debtor's revival, when it was not pressed during the Corporate Insolvency Resolution Process. Relying on Supreme Court rulings from 2020, Justice Moushumi Bhattacharya ruled that the claim would get …

ArcelorMittal aims to complete Essar Steel acquisition by year end
5 years, 1 month ago

ArcelorMittal aims to complete Essar Steel acquisition by year end

Live Mint  

Following the Supreme Court verdict on Essar Steel resolution plan, global steel giant ArcelorMittal said it expects to complete the acquisition of the debt-ridden company by the end of this year. ArcelorMittal India Private Limited's resolution plan for Essar Steel India Limited has been unconditionally approved by the Supreme Court of India and the approval of AMIPL’s resolution plan is …

Beyond Essar Steel case awaits a minefield of bad loans for lenders
5 years, 1 month ago

Beyond Essar Steel case awaits a minefield of bad loans for lenders

Live Mint  

The closure of the Essar Steel insolvency case, one of the first set of 12 large defaulting accounts referred under a nascent code, is a victory for banks. “While the SC does ask the COC to consider operational creditors as well, we believe recovery for banks in the Essar Steel case will be closer to 90% versus 60% —within our …

A precedent: on apex court ruling on Essar Steel
5 years, 1 month ago

A precedent: on apex court ruling on Essar Steel

The Hindu  

The Supreme Court’s judgment on Friday in the matter of Essar Steel’s bankruptcy is a landmark in the short history of insolvency and bankruptcy resolution in India. Apart from clearing the way for eventual sale of Essar Steel to ArcelorMittal, the verdict has clarified on important aspects of insolvency resolution that had been interpreted variously by the National Company Law …

Arcelor Mittal Bid For Essar Steel: Key Aspects In SC Judgment
5 years, 1 month ago

Arcelor Mittal Bid For Essar Steel: Key Aspects In SC Judgment

Live Law  

In what will have a long-standing impact on the IBC regime, the SC has decided the Essar Steel Insolvency matter in favour of the Committee of Creditors of Essar Steel, and has set aside the NCLAT'sjudgment. Role of the CoC in the CIR process The Bench observed that since nothing can be done qua the management of the corporate debtor …

Look forward to close Essar Steel acquisition soon: ArcelorMittal
5 years, 1 month ago

Look forward to close Essar Steel acquisition soon: ArcelorMittal

Live Mint  

Global steel giant ArcelorMittal on Friday said it is looking forward to close the acquisition of debt-ridden Essar Steel soon. The remarks followed the apex court verdict that gave nod to ArcelorMittal's resolution plan, paving way for ArcelorMittal's takeover of Essar Steel for ₹42,000 crore. The Supreme Court on November 15, paved the way for ArcelorMittal takeover of debt-ridden Essar …

SC on Essar Steel: CoC decision final; ruling clears way for ArcelorMittal
5 years, 1 month ago

SC on Essar Steel: CoC decision final; ruling clears way for ArcelorMittal

Live Mint  

The Supreme Court on Friday said the National Company Law Appellate Tribunal should not interfere with the decisions of the committee of creditors in the Essar Steel insolvency case. The Supreme Court decision overrules NCLAT’s July 5 judgment that operational creditors should be treated on a par with financial creditors for distribution of funds from ArcelorMittal’s bid in the Essar …

Essar Insolvency: SC Hears Arguments Of Standard Chartered Bank & Operational Creditors Against CoC & Arcelor Mittal [Read Written Submissions]
5 years, 2 months ago

Essar Insolvency: SC Hears Arguments Of Standard Chartered Bank & Operational Creditors Against CoC & Arcelor Mittal [Read Written Submissions]

Live Law  

Picking up from the last hearing, Sibal appearing on behalf of Standard Chartered Bank continued his arguments on the third day of the Essar Steel Insolvency hearing. Questioning the role of distribution taken over by the CoC, Sibal on SCB's behalf argued that the CoC is not authorised to decide the distribution of the resolution plan, and going by the …

Supreme Court defers hearing of Essar Steel insolvency case till 19 August
5 years, 5 months ago

Supreme Court defers hearing of Essar Steel insolvency case till 19 August

Live Mint  

New Delhi: The Supreme Court on Wednesday deferred till 19 August hearing in the Essar Steel insolvency case, saying said the matter should be decided in light of fresh challenges following recent amendments to the Insolvency and Bankruptcy Code. A division bench, headed by Justice Rohinton Fali Nariman and comprising Justice Surya Kant, heard the submissions by operational creditors and …

Apex court stays NCLAT verdict in Essar Steel insolvency case
5 years, 5 months ago

Apex court stays NCLAT verdict in Essar Steel insolvency case

Live Mint  

The Supreme Court on Monday put on hold the sale of Essar Steel India Ltd to ArcelorMittal after lenders to the bankrupt Indian steel maker challenged an appeals court ruling that said operational creditors have to be treated on a par with financial creditors. The bankruptcy appeals court order, approving ArcelorMittal’s ₹42,000 crore offer for Essar Steel, had upset secured …

Essar Steel insolvency: Supreme Court orders status quo in case; to be heard on 7 August
5 years, 5 months ago

Essar Steel insolvency: Supreme Court orders status quo in case; to be heard on 7 August

Firstpost  

The Supreme Court Monday ordered status quo as of today in the Essar insolvency case New Delhi: The Supreme Court on Monday put on hold the sale of Essar Steel to ArcelorMittal as it agreed to hear the appeal filed by financial lenders against the NCLAT order, saying it would like to settle the issue “once and for all”. The …

Lenders to Essar Steel move Supreme Court against NCLAT ruling
5 years, 5 months ago

Lenders to Essar Steel move Supreme Court against NCLAT ruling

Live Mint  

A consortium of lenders led by State Bank of India has filed a petition before the Supreme Court against a National Company Law Appellate Tribunal ruling that Essar Steel’s operational creditors have to be treated on a par with financial creditors at the time of settling claims. The insolvency court’s ruling is expected to have a far-reaching impact and could …

Lenders to move Supreme Court against NCLAT order on higher payout to Essar Steel's operational creditors: SBI chief
5 years, 5 months ago

Lenders to move Supreme Court against NCLAT order on higher payout to Essar Steel's operational creditors: SBI chief

Firstpost  

Mumbai: Going public with his anguish and disappointment over secured creditors’ rights not being enforced, State Bank of India chairman Rajnish Kumar Wednesday said lenders will soon be moving the Supreme Court against National Company Law Appellate Tribunal awarding higher payout to Essar Steel’s operational creditors and treating them on par with secured lenders. While approving ArcelorMittal’s Rs 42,000-crore bid …

A disappointed SBI chairman says banks will soon take NCLAT to SC on Essar Steel order
5 years, 5 months ago

A disappointed SBI chairman says banks will soon take NCLAT to SC on Essar Steel order

Live Mint  

Going public with his anguish and disappointment over secured creditors' rights not being enforced, State Bank chairman Rajnish Kumar on Wednesday said lenders will soon be moving the Supreme Court against NCLAT awarding higher payout to Essar Steel's operational creditors and treating them on par with secured lenders. While approving ArcelorMittal's ₹42,000-crore bid for the bankrupt flagship company of the …

NCLAT rejects Ruia's bid to block ArcelorMittal; approves bid for Essar Steel with modification
5 years, 6 months ago

NCLAT rejects Ruia's bid to block ArcelorMittal; approves bid for Essar Steel with modification

Firstpost  

Essar Steel was auctioned under the new Insolvency and Bankruptcy Code to recover Rs 54,547 crore of unpaid dues of financial lenders and operational creditors. The National Company Law Appellate Tribunal, however, gave operational creditors equal status as lenders in the distribution of the ArcelorMittal’s bid amount among the creditors of Essar Steel. “Therefore, the Application preferred by the Appellant- …

NCLAT reserves order on ArcelorMittal takeover of Essar Steel
5 years, 7 months ago

NCLAT reserves order on ArcelorMittal takeover of Essar Steel

Live Mint  

New Delhi: The National Company Law Appellate Tribunal on Tuesday reserved its order over a batch of petitions against ArcelorMittal's ₹42,000-crore take over bid for Essar Steel as well as the distribution of funds among the creditors of the debt-ridden company. During the proceedings, senior advocate Kapil Sibal appearing for Standard Chartered Bank, a secured creditor of Essar Steel, questioned …

Essar Steel reports ₹4,229 cr EBITDA during insolvency period
5 years, 7 months ago

Essar Steel reports ₹4,229 cr EBITDA during insolvency period

Live Mint  

New Delhi: Debt-ridden Essar Steel has registered an EBITDA of ₹4,229 crore during its Corporate Insolvency Resolution period. In an affidavit filed before the National Company Law Appellate Tribunal last week, the resolution professional said the company earned ₹4,000 crore from its operations between August 2017 and February 2019. Operational creditors of Essar Steel are not satisfied with the CoC …

ArcelorMittal’s Essar Steel wait gets longer with Supreme Court status quo
5 years, 8 months ago

ArcelorMittal’s Essar Steel wait gets longer with Supreme Court status quo

Live Mint  

New Delhi: The Supreme Court on Friday halted the resolution process of Essar Steel, holding back ArcelorMittal SA’s takeover bid for the stressed steel mill and enter the Indian steel industry. The court was hearing a plea by Standard Chartered Bank, one of the lenders to Essar Steel, which is unhappy with the settlement it would receive under the resolution …

NCLAT likely to direct ArcelorMittal to deposit Rs 42,000-cr bid amount for acquiring Essar Steel
5 years, 9 months ago

NCLAT likely to direct ArcelorMittal to deposit Rs 42,000-cr bid amount for acquiring Essar Steel

Firstpost  

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. New Delhi: The National Company Law Appellate Tribunal on 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 …

NCLAT may ask ArcelorMittal to deposit ₹42,000 cr for acquiring Essar Steel
5 years, 9 months ago

NCLAT may ask ArcelorMittal to deposit ₹42,000 cr for acquiring Essar Steel

Live Mint  

New Delhi: The National Company Law Appellate Tribunal on Tuesday said it was likely to direct global steel major ArcelorMittal to deposit the bid amount of ₹42,000 crore for acquiring Essar Steel in separate accounts during the next hearing on 23 April. The bench also asked ArcelorMittal to file an affidavit before it, detailing the steps to be taken for …

Essar Steel CoC meets over payout of ArcelorMittal’s ₹42,000 crore offer
5 years, 9 months ago

Essar Steel CoC meets over payout of ArcelorMittal’s ₹42,000 crore offer

Live Mint  

New Delhi: The lenders of Essar Steel Ltd on Wednesday informed National Company Law Appellate Tribunal that a meeting of the committee of creditors of the debt-ridden firm is going on over distribution of ₹42,000 crore offered by global steel major ArcelorMittal SA. The NCLAT had on 20 March asked the resolution professional of Essar Steel to call for a …

NCLAT gives conditional nod to ArcelorMittal's Rs 42,000 crore resolution plan for debt-ridden Essar Steel
5 years, 9 months ago

NCLAT gives conditional nod to ArcelorMittal's Rs 42,000 crore resolution plan for debt-ridden Essar Steel

Firstpost  

NCLAT said there is no stay on the Resolution Professional of Essar Steel to disburse the funds among financial and operational creditors of the company New Delhi: The National Company Law Appellate Tribunal Monday gave conditional approval to Rs 42,000 crore resolution plan of ArcelorMittal for debt-ridden Essar Steel saying it will be subject to its final order in the …

Essar Steel takeover: NCLAT refuses stay on NCLT nod to ArcelorMittal plan; seeks fresh distribution plan for bid amount
5 years, 9 months ago

Essar Steel takeover: NCLAT refuses stay on NCLT nod to ArcelorMittal plan; seeks fresh distribution plan for bid amount

Firstpost  

Making a suggestion, the NCLAT said all operational creditors below Rs 1 crore should get 100 per cent of the dues and so should the employees of Essar Steel. New Delhi: The National Company Law Appellate Tribunal on Friday refused to stay a bankruptcy court order approving steel giant ArcelorMittal’s Rs 42,000-crore takeover bid for Essar Steel and sought a …

Essar Steel lenders said to mull higher payout to Standard Chartered
5 years, 9 months ago

Essar Steel lenders said to mull higher payout to Standard Chartered

Live Mint  

Mumbai: Lenders to bankrupt Essar Steel Ltd are considering increasing a payout to Standard Chartered Plc to expedite the sale of the company to ArcelorMittal, according to people with knowledge of the matter. Standard Chartered has filed a plea to National Company Law Appellate Tribunal opposing a decision by a lower court to sell Essar Steel to ArcelorMittal, world’s largest …

Resolution, at last: on Essar Steel case
5 years, 9 months ago

Resolution, at last: on Essar Steel case

The Hindu  

The National Company Law Tribunal’s approval of ArcelorMittal’s bid for the insolvent Essar Steel Ltd. is significant for several reasons. Among the aspects that have been clarified during the long resolution process for Essar Steel are the eligibility of those who have defaulted in repaying their borrowings elsewhere to bid, the time-limits for bidding and the place of unsecured, operational …

Decide on ArcelorMittal Essar Steel bid by 8 March, NCLAT tells NCLT
5 years, 10 months ago

Decide on ArcelorMittal Essar Steel bid by 8 March, NCLAT tells NCLT

Live Mint  

New Delhi: The National Company Law Appellate Tribunal on Thursday directed the NCLT Ahmedabad Bench to take a decision on the ₹42,000-crore resolution plan submitted by ArcelorMittal for debt-ridden Essar Steel by 8 March. The NCLAT directive came while the tribunal was hearing an application filed by ArcelorMittal, whose ₹42,000-crore takeover proposal for Essar Steel had been approved by the …

NCLAT extends deadline for NCLT Ahmedabad to decide on Essar Steel insolvency case by Feb 19
5 years, 10 months ago

NCLAT extends deadline for NCLT Ahmedabad to decide on Essar Steel insolvency case by Feb 19

The Hindu  

The National Company Law Appellate Tribunal on Tuesday granted a week more time to NCLT Ahmedabad to decide over the ₹42,000 crore resolution plan submitted by ArcelorMittal for the debt ridden Essar Steel. During the hearing, the NCLAT was informed that Ahmedabad Bench has completed hearing on operational creditors plea and is scheduled to hear suspended Essar directors later in …

Essar Steel insolvency case: Operational creditors on tenterhooks
5 years, 10 months ago

Essar Steel insolvency case: Operational creditors on tenterhooks

Live Mint  

Ahmedabad/New Delhi: The fate of operational creditors in the Essar Steel insolvency case hangs in the balance, with the Supreme Court on Monday rejecting their petitions to stay the proceedings, and the bankruptcy tribunal’s Ahmedabad bench reserving its order on their challenge. The operational creditors are challenging the decision of Essar Steel Ltd’s lenders and resolution professional accepting the resolution …

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