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ArcelorMittal points to Essar Steel lenders' backing in NCLAT

People close to the development said Abhishek Manu Singhvi, appearing for ArcelorMittal, read out certain parts from the petition filed by the CoC during the hearing at NCLAT on Wednesday.

Ishita Ayan Dutt  |  Kolkata 

ArcelorMittal
ArcelorMittal said the purpose of Essar Steel’s insolvency process was to submit resolution plans that offer value and provide ESIL with the best chance of a successful future

Lenders to Essar Steel feel that ArcelorMittal, “a serious and credible resolution applicant”, has displayed “a genuine intention and taken concrete steps” by attempting to clear overdues in defaulting firms whereit was a shareholder.

This was stated by ArcelorMittal, with reference to the documents presented in the on Wednesday.

A statement tweeted by said, “We welcomed the opportunity to begin presenting our case to the (NCLAT) on Wednesday.

We have consistently maintained our belief that our offer for (ESIL) is eligible and that we are the only credible resolution applicant for

ALSO READ: Numetal questions ArcelorMittal's eligibility to bid for Essar Steel

The company further said the documents presented and discussed in court gave a clear picture of the Committee of Creditor’s (CoC) view, namely that is a “serious and credible resolution applicant” and that we have displayed “a genuine intention and taken concrete steps” to clear the overdues at in which we held a passive, minority shareholding.

People close to the development said Abhishek Manu Singhvi, appearing for ArcelorMittal, read out certain parts from the petition filed by the CoC during the hearing at on Wednesday.

The CoC had given and Numetal seven days to cure the ineligibility in line with the National Company Law Tribunal (NCLT) order that pointed towards payment of overdues as a cure for ineligibility.


ALSO READ: JSW Steel plans bid for ArcelorMittal's Galati plant in Romania

ArcelorMittal has transferred Rs 70 billion in escrow on account of its shareholding in and KSS Petron, both classified as NPAs for more than a year. The offer, however, was subject to ArcelorMittal being declared a successful and eligible bidder for Essar.

ArcelorMittal reiterated that the purpose of the IBC and Essar Steel’s insolvency process is for to submit resolution plans that offer value to creditors and provide Essar Steel with the best chance of having a successful future.

First Published: Thu, July 05 2018. 06:50 IST
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