The distribution of Rs. 42000 crore coming from the resolution plan of global steel major ArcelorMittal has to be carried out, Essar Steel lenders informed the National Company Law Appellate Tribunal that it has met the Committee of Creditors of the debt-ridden firm in this matter.
The tribunal held back on March 20 asked the resolution professional of Essar Steel to call for a meeting of COC to reconsider distribution of Rs. 42000 crore fund. Justice SJ Mukhopadhyay along with two-member NCLAT bench has said, “we have to see the outcome of the Committee of Creditors meeting”
The appellate tribunal also said that the March 8 order of the Ahmedabad-based bench the National Company Law Tribunal approving ArcelorMittal plan should be implemented in “letters and spirit”.
The resolution proposal by ArcelorMittal will provide financial creditors Rs 41,987 crore out of their total dues of Rs 49,395 crore. If the ArcelorMittal plan is implemented, Standard Chartered will only get Rs 60 crore against its claims of Rs 3,187 crore from Essar Steel.
Read EquityPandit’s Nifty Metal Outlook for the Week