BPCL seeks liquidation of Essar Steel
5 years, 11 months ago

BPCL seeks liquidation of Essar Steel

Live Mint  

Bharat Petroleum Corp Ltd today sought the liquidation of the assets of Essar Steel India Ltd at a bankruptcy court. The public sector oil company objected to ArcelorMittal’s resolution plan, which, it said, sidestepped dues to operational creditors like BPCL. Challenging this, the counsel for BPCL today said there was no reason to believe that Essar Steel would not receive more than ₹15,000 crore rupees if it went into liquidation. He said the shareholders of Essar Steel, led by the former promoters, had already expressed their intent to pay the entire debt of about ₹55,000 crore as compared to the ₹42,000 crore offered by ArcelorMittal as part of its resolution plan. The BPCL counsel said if Essar Steel went into liquidation, an official liquidator would invite bids and there was a chance that BPCL might recover its dues in full.

Resolution Steel Plan Crore Bpcl Creditors Essar Essar Steel  resolution  steel  crore  liquidation  essar  bpcl  arcelormittals  went  creditors  seeks  plan  operational

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 …

How bankruptcy got redefined in India
5 years ago

How bankruptcy got redefined in India

Live Mint  

Mumbai: On 16 December, the day it closed its acquisition of Essar Steel India Ltd, ArcelorMittal SA, the world’s largest steel company and the new owner of the steel mill, held a closing party at The Oberoi in Mumbai. Evolution of IBC When Standard Chartered Bank and State Bank of India filed insolvency proceedings against Essar Steel in August 2017, …

Essar Steel resolution to boost Q3 earnings with Rs 12,000-cr recovery; step to have positive impact on economy: SBI chief
5 years ago

Essar Steel resolution to boost Q3 earnings with Rs 12,000-cr recovery; step to have positive impact on economy: SBI chief

Firstpost  

With the order, the apex court paved the way for ArcelorMittal’s takeover of Essar Steel for Rs 42,000 crore. New Delhi: State Bank of India Chairman Rajnish Kumar on Monday said the resolution of Essar Steel will boost profitability of the bank by about Rs 12,000 crore in the third quarter of the current financial year. The country’s largest bank, …

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 …

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 …

Supreme Court clears the path for ArcelorMittal to acquire bankrupt Essar Steel
5 years, 1 month ago

Supreme Court clears the path for ArcelorMittal to acquire bankrupt Essar Steel

The Hindu  

The Supreme Court on Friday accepted ArcelorMittal’s offer to pay an aggregate ₹42,000 crore as an upfront amount to the secured financial creditors of bankrupt Essar Steel. Explaining why financial creditors are favoured over operational creditors of a bankrupt company in a corporate resolution process, Justice Nariman said financial creditors were capital-providers for companies, who in turn were able to …

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 …

Opinion: The Essar ruling and a sigh of relief
5 years, 1 month ago

Opinion: The Essar ruling and a sigh of relief

Live Mint  

In a decision that would reduce litigations and expedite the resolution of a corporate failure, the original purpose of India’s Insolvency and Bankruptcy Code, the Supreme Court on Friday set aside an appellate tribunal’s order that had been challenged. In July, the National Company Law Appellate Tribunal had held that financial lenders and operational creditors must be treated on par …

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 …

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 …

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 …

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 resolution plan violates Insolvency & Bankruptcy Code, says Prashant Ruia to NCLAT
5 years, 7 months ago

ArcelorMittal resolution plan violates Insolvency & Bankruptcy Code, says Prashant Ruia to NCLAT

Firstpost  

Until 31 December 2018, Mittal was a shareholder of Navoday Consultants, which in turn was a shareholder in certain companies run by his brothers Pramod and Vinod Mittal, which had defaulted on bank loans. New Delhi: Prashant Ruia, the promotor of debt-ridden Essar Steel, Wednesday submitted before the National Company Law Appellate Tribunal that the resolution plan moved by ArcelorMittal …

Essar Steel insolvency case: Majority shareholders seek rejection of ArcelorMittal's Rs 42,000 crore bid
5 years, 8 months ago

Essar Steel insolvency case: Majority shareholders seek rejection of ArcelorMittal's Rs 42,000 crore bid

Firstpost  

New Delhi: An Essar Steel’s majority shareholder Tuesday moved NCLAT seeking rejection of ArcelorMittal’s Rs 42,000 crore bid of the bankrupt company, alleging that its promoter Lakshmi Mittal hid his association with loan defaulting firms run by his brothers, that made his firm ineligible to participate in insolvency proceedings. In its plea before the National Company Law Appellate Tribunal, ESAHL …

Supreme Court halts ArcelorMittal payment to lenders to buy Essar Steel; Mittal's foray into Indian market delayed
5 years, 8 months ago

Supreme Court halts ArcelorMittal payment to lenders to buy Essar Steel; Mittal's foray into Indian market delayed

Firstpost  

India’s bankruptcy court had approved ArcelorMittal’s $6 billion-bid for debt-ridden Essar on 8 March, potentially ending months of court battles and opening the sector to outsiders. New Delhi: The Supreme Court on Friday ordered ArcelorMittal SA to stop a payment to lenders to buy Essar Steel, a lawyer involved in the case said, delaying billionaire Lakshmi Mittal’s entry into the …

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 …

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 …

ArcelorMittal's takeover bid for debt-ridden Essar Steel approved by NCLT Ahmedabad
5 years, 10 months ago

ArcelorMittal's takeover bid for debt-ridden Essar Steel approved by NCLT Ahmedabad

Firstpost  

NCLT approved ArcelorMittal’s bid in October, even as Essar’s founders—the billionaire Ruia family—tried to hold onto the company The National Company Law Tribunal on Friday approved global steel giant ArcelorMittal SA’s bid for debt-ridden Essar Steel, potentially ending months of court battles and opening the country’s steel industry to outsiders. ArcelorMittal confirmed the NCLT had approved the takeover of the …

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 …

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 …

NCLT Rejects Bid Of Essar Steel Promoters To Close Insolvency Process By Offering Settlement [Read Order]
5 years, 11 months ago

NCLT Rejects Bid Of Essar Steel Promoters To Close Insolvency Process By Offering Settlement [Read Order]

Live Law  

The NCLT Ahmedabad bench on Tuesday rejected the application made by Essar Steel promoters to close the insolvency process against it by offering to pay off the outstanding dues.The Ruias, promoters of Essar Steel, offered to pay Rs. The NCLT Ahmedabad bench on Tuesday rejected the application made by Essar Steel promoters to close the insolvency process against it by …

NCLT turns down Essar Steel promoters’ plea for settlement plan
5 years, 11 months ago

NCLT turns down Essar Steel promoters’ plea for settlement plan

Live Mint  

In a major setback to the Ruia family, the Ahmedabad bankruptcy court today turned down Essar Steel Asia Holdings Ltd’ bid to regain control over the bankruptcy ridden Essar Steel. ESAHL had challenged the Resolution Professional and CoC’ decision to accept ArcelorMittal’s resolution plan for Essar Steel where the resolution process under Indian Bankruptcy Code had been initiated. The Supreme …

Our offer better than ArcelorMittal’s proposal: Essar Steel
5 years, 11 months ago

Our offer better than ArcelorMittal’s proposal: Essar Steel

Live Mint  

Essar Steel Wednesday said the ₹54,389-crore offer by its shareholders to pay all dues of financial and operational creditors of the company was much superior to a rival offer by ArcelorMittal and lenders should not be pressured into giving control of the company to any entity that undervalues it. The statement came on a day when the National Company Law …

NCLT to issue order on Essar Steel insolvency by 31 January: NCLAT
5 years, 11 months ago

NCLT to issue order on Essar Steel insolvency by 31 January: NCLAT

Live Mint  

The National Company Law Appellate Tribunal on Wednesday directed the Ahmedabad bench of the National Company Law Tribunal to pass an order on the insolvency case filed against Essar Steel Ltd. “We allow the designated authority to pass appropriate orders by the next date, failing which this appellate tribunal will decide,” said a two-member NCLAT bench headed by its chairperson …

SBI to sell debt in Essar Steel, invites EoI from financial institutions; move not to affect insolvency process
5 years, 11 months ago

SBI to sell debt in Essar Steel, invites EoI from financial institutions; move not to affect insolvency process

Firstpost  

SBI, which is the largest creditor having total exposure of Rs 15,431.44 crore in Essar Steel, invited EoI from banks, asset reconstruction firms, and financial institutions for the proposed sale of its debt. SBI, which is the largest creditor having total exposure of Rs 15,431.44 crore in Essar Steel, has invited expression of interest from banks, asset reconstruction companies, and …

SBI sale of debt in Essar Steel not to stall IBC process
5 years, 11 months ago

SBI sale of debt in Essar Steel not to stall IBC process

Live Mint  

State Bank of India has decided to sell its loans in Essar Steel as it could see a spurt in provisioning for bad loans and erosion in capital base if the steel makers insolvency process gets delayed further, sources said. SBI, which is the largest creditor having total exposure of ₹15,431.44 crore in Essar Steel, has invited expression of interest …

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