Essar Steel insolvency case: NCLAT extends deadline for NCLT Ahmedabad to decide Rs 42,000 cr resolution plan submitted by ArcelorMittal by 19 February

The National Company Law Appellate Tribunal (NCLAT) on Tuesday granted a week more time to NCLT Ahmedabad to decide over the Rs 42,000 crore resolution plan submitted by ArcelorMittal for the debt-ridden Essar Steel

Press Trust of India February 12, 2019 12:24:49 IST
Essar Steel insolvency case: NCLAT extends deadline for NCLT Ahmedabad to decide Rs 42,000 cr resolution plan submitted by ArcelorMittal by 19 February
  • A two-member bench headed by Justice S J Mukhopadhaya has directed the Ahmedabad bench of the National Company Law Tribunal (NCLT) to decide over the matter by 19 February

  • Earlier on 4 February, the NCLAT has asked NCLT Ahmedabad to decide by 11 February, failing to which it would call records and pass order

  • The NCLAT direction came while hearing an application filed by ArcelorMittal, whose Rs 42,000 crore takeover proposal of the indebted steel-maker has been approved by the committee of creditors (CoC) and is pending before the NCLT for approval

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday granted a week more time to NCLT Ahmedabad to decide over the Rs 42,000 crore resolution plan submitted by ArcelorMittal for the debt-ridden Essar Steel.

A two-member bench headed by Justice S J Mukhopadhaya has directed the Ahmedabad bench of the National Company Law Tribunal (NCLT) to decide over the matter by 19 February.

Essar Steel insolvency case NCLAT extends deadline for NCLT Ahmedabad to decide Rs 42000 cr resolution plan submitted by ArcelorMittal by 19 February

Representational image. Reuters.

During the hearing, NCLAT was informed that Ahmedabad bench has completed hearing on operational creditors plea and is scheduled to hear suspended Essar directors later in the day on Tuesday.

Earlier on 4 February, the NCLAT has asked NCLT Ahmedabad to decide by 11 February, failing to which it would call records and pass order.

The NCLAT direction came while hearing an application filed by ArcelorMittal, whose Rs 42,000 crore takeover proposal of the indebted steel-maker has been approved by the committee of creditors (CoC) and is pending before the NCLT for approval.

Earlier, on 29 January, NCLT Ahmedabad had rejected the debt settlement proposal put forth by the shareholders of Essar Steel saying the offer violates Section 12A of the Insolvency and Bankruptcy Code.

The NCLT had said that Rs 54,389-crore offer by Essar Steel Asia Holding, which is much higher than the ArcelorMittal's Rs 42,000 crore bid, is not maintainable as the only way to make a proposal is through Section 12A.

Essar Steel owns a 10-million-tonne steel mill in Gujarat.

Updated Date:

also read

NCLAT reserves order on petitions against ArcelorMittal's Rs 42,000-crore takeover bid of Essar Steel
Business

NCLAT reserves order on petitions against ArcelorMittal's Rs 42,000-crore takeover bid of Essar Steel

A two-member bench asked all parties, including ArcelorMittal, to file their written submissions over their submissions by Wednesday

Company law appellate tribunal agrees to hear NuMetal, ArcelorMittal petition in Essar Steel case
Business

Company law appellate tribunal agrees to hear NuMetal, ArcelorMittal petition in Essar Steel case

Essar Steel had a debt of Rs 49,000 crore and was referred to NCLT in June last year

Essar Steel insolvency case: Majority shareholders seek rejection of ArcelorMittal's Rs 42,000 crore bid
Business

Essar Steel insolvency case: Majority shareholders seek rejection of ArcelorMittal's Rs 42,000 crore bid

An Essar Steel's majority shareholder Tuesday moved NCLAT seeking rejection of ArcelorMittal's Rs 42,000 crore bid of the bankrupt company, alleging that its promoter Lakshmi Mittal hid his association with loan defaulting firms run by his brothers, that made his firm ineligible to participate in insolvency proceedings