The appellate tribunal refused to stay the National Company Law Tribunal’s order approving ArcelorMittal’s bid to take over insolvent Essar Steel Ltd.
If discriminatory, this Appellate Tribunal may modify the plan after hearing the parties, without interfering with the viability and feasibility of the resolution plan, and the total upfront payment, as suggested by the resolution applicant.NCLAT Order (March 18, 2019)
The appellate tribunal also ordered the Essar Steel resolution professional “to keep the company as going concern and to act in terms of the resolution plan for implementation of resolution plan, which shall be subject to the decision of these appeals”.
Also Read: Essar Steel: Can The Creditors’ Committee Ignore Tribunals’ ‘Suggestion’ Of Equitable Allocation?
Essar Steel was one of the 12 large corporate accounts shortlisted for insolvency proceedings by the Reserve Bank of India in June 2017. State Bank of India and Standard Chartered Bank filed insolvency proceedings against the company at the Ahmedabad bench of the NCLT.
But repeated litigation by the promoter family, operational creditors and some financial creditors led to a considerable delay in the resolution process. The case has lingered for over 580 days compared with the 270-day resolution period prescribed in the Insolvency and Bankruptcy Code.
Located in western India, Essar Steel is a fully integrated steel manufacturer with a current capacity of 10 million tonnes per annum (MTPA). It is amongst the larger steel capacities in India and the only one of its kind on the block.
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