Essar Steel Insolvency

India must guard against perverse bankruptcy judgments, such as the one on Essar Steel

The order, government said, is not in line with the Insolvency and Bankruptcy Code

The ruling can make credit costs for India Inc. surge, shares of state-run banks swoon and foreign investors flee

NCLAT's decision to equate operational, financial creditors could lead to a severe plunge in recovery rate, says CoC

Banks are joining foreign funds including SC Lowy in predicting risks from the Essar Steel sale

CoC to have no role in distribution of amount between operational and financial creditors, rules NCLAT

The company earned Rs 4,000 cr from its operations between August 2017 and February 2019, according to an affidavit filed before the NCLAT

The CoC of Essar Steel has divided operational creditors of the company into two types - one with claims under Rs 1 crore and another above Rs 1 crore

ArcelorMittal's resolution proposal provides financial creditors Rs 41,987 crore out of their total dues of Rs 49,395 crore

The SBI action came just days before the NCLAT was to hear the outcome of the CoC meeting on April 9

Three directors of Essar Steel had mentioned the issue on Monday before a two-judge bench headed by Chairman Justice S J Mukhopadhaya

Essar promoters may move NCLAT on Monday

A forum of operational creditors with over Rs 1 crore of dues, said it is unfair that ArcelorMittal is not paying a penny to such creditors

Around eight OCs, including Orissa Stevedores, Signode India, and Timken India, among others, had filed a plea seeking quashing of Arcelor's resolution plan and consideration of ESAHL's proposal

The Ruias are locked in a bitter battle with the Mittals and are contesting their offer to buy Essar Steel in the bank­ruptcy and other courts

Written submissions from all sides including ArcelorMittal, Committee of Creditors and Resolution Professional have been invited by February 18

Standard Chartered Bank has been excluded from the committee of creditors and is not counted as a secured financial creditor

SBI Chairman Rajnish Kumar explained the rationale for putting the Essar exposure on the block

Arcelor will jointly own and operate ESIL in partnership with Nippon Steel & Sumitomo Metal Corporation

By giving an opportunity to shareholders of Essar Steel to make an offer under Section 12A, the CoC will reinforce the objective of value maximisation in the interest of all the stakeholders