ArcelorMittal’s bid to take over insolvent Essar Steel Ltd. was approved by the Ahmedabad bench of the National Company Law Tribunal.
In a statement made by ArcelorMittal which said, “We welcome today’s pronouncement by the NCLT Ahmedabad. While we will need to review the full written order once it becomes available, we hope to complete the transaction as soon as possible.”
Despite the opposition from Essar groups promoter, Riau family, the committee of creditors chose ArcelorMittal as a winning bidder for the insolvent Essar Steel on October 2018.
The erstwhile promoters had offered to repay lenders and vendors in full if the committee of creditors withdrew the steelmaker from insolvency proceedings. The lenders rejected the settlement plan as did the NCLT.
Essar Steel which was shortlisted by the Reserve Bank of India (RBI) for insolvency proceeding in June 2017, was one of the large corporate accounts selected under the insolvency and bankruptcy court (IBC).
Earlier on February 28, the NCLT rejected pleas submitted by 32 operational creditors and has said that resolution plan submitted by ArcelorMittal was being reviewed for final approval.