News

July 22, 2019

Essar Steel Insolvency Case: Supreme Court Orders Status Quo On NCLAT Verdict; Monitoring Panel To Continue Work


[ By Bobby Anthony ]

Essar-Steel

The monitoring committee will continue its work till the case is heard on August 7, the Supreme Court bench ruled.

The bench heard the plea of the Committee of Creditors challenging the National Company Law Appellate Tribunal’s (NCLAT) order of July 4.

Earlier, the NCLAT order had approved steel tycoon Lakshmi Mittal-led ArcelorMittal's Rs 42,000 crore bid for the acquisition of Essar Steel.

NCLAT had done so after it rejected a plea by the lead shareholder of the debt-laden firm challenging the eligibility of the bidder.

However, the NCLAT had given operational creditors equal status as lenders in the distribution of the ArcelorMittal's bid amount among the creditors of Essar Steel.

It may be recalled that Essar Steel was auctioned under the new Insolvency and Bankruptcy Code (IBC) to recover Rs 54,547 crore of unpaid dues of financial lenders and operational creditors.

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