The Insolvency and Bankruptcy Board of India said it did not find any contradiction in approvals of resolution for Essar Steel Ltd. and Binani Cement Ltd. in the context of “value maximisation”.
The National Company Law Tribunal's Ahmedabad bench approved ArcelorMittal's Rs 42,000-crore resolution plan, rejecting the Ruias settlement offer of Rs 54,389 crore.
Recently, in the case of Binani Cement, the Kolkata bench of NCLT approved the resolution plan of UltraTech Cement which was higher than what the Dalmia Bharat group had to offer even after the committee of creditors earlier selected them as the higher bidder.
The Binani Cement and Essar Steel cases were debated a lot from the point of view of value maximisation in a corporate resolution plan.
On resolutions of Essar Steel and Binani Cement, IBBI Chairman MS Sahoo said, “In Binani, the one which was approved was within the rules. The one which was rejected was because it was not balancing the interest of the stakeholders.”
If the committee of creditors approved “within the process”, then it is valid for both Binani as well as ArcelorMittal.
The committee of creditors is supreme in commercial matters but that supremacy has to be within the framework of law, he said.
“We continue to believe that our settlement proposal of Rs 54,389 crore is the most compelling one available to Essar Steel creditors and fulfills the Insolvency and Bankruptcy Code's declared overriding objective of value maximisation, which has been established time and again by courts at all levels,” Essar said in their reaction after the NCLT approval.
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