Essar Steel insolvency case: SC clears decks for ArcelorMittal's bid

As per apex counrt, the operational creditors were acting on behalf of Essar Steel promoters to delay the insolvency process.

The fate of operational creditors in the Essar Steel insolvency case hangs in the balance, the Supreme Court (SC) on Monday dismissing a plea file by them.
 
The creditors had also sought to be heard by the National Company Law Tribunal (NCLT) on ArcelorMittal’s bid for the company. 
 
The lenders and resolution professional of Essar Steel Ltd had accepted the Rs 42,000 crore resolution plan filed by ArcelorMittal. 
 
The apex court, however, rejected their plea and asked the NCLT Ahmedabad Bench to take a decision on ArcelorMittal’s bid by February 11.
 
SC said insolvency process began for Essar Steel 571 days ago but still remains unresolved and, therefore, it must not be delayed further. Normally, the deadline for an insolvency process is 270 days.
 
As per apex counrt, the operational creditors were acting on behalf of Essar Steel promoters to delay the insolvency process. 
 
Meanwhile, Essar’s promoters have moved the NCLAT against NCLT's January 29 order rejecting their Rs 54,389-crore debt-settlement offer.
 
Of Rs 42,000 crore resolution plan, ArcelorMittal proposes to repay lenders, but does not cover dues of ₹15,000 crore owed to operational creditors. Essar Steel owes over ₹49,000 crore to more than two dozen banks, led by State Bank of India.
 
Source: Business Standard

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