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Essar Steel: SCB counsel Kapil Sibal challenges acceptance of bid amount

IANS  |  Mumbai 

Arguing on behalf of Bank, on Monday challenged the acceptance of Rs 39,500 crore bid amount by the Committee of Creditors(CoC) of bankrupt

The amount was contrary to the undertaking given to of Rs 42,000 crore for buying

made the arguments during the hearing of Bankruptcy proceeding in NCLAT. Bank is a financial creditor of Essar Steel.

questioned the conflict of interest of the members of the Committee of Creditors, who allegedly accepted a lower amount. He further alleged that the truncated CoC of four members privately negotiated with to get a Slurry Pipeline, which is not an asset of Essar Steel to be included as part of overall resolution of the

This meant that an amount of Rs 2,500 crore was taken out from the Rs 42,000 crore settlement offer for Essar Steel for settlement of creditors having exposure in the slurry pipeline.

The Bank alleged that the amount of Rs 2,500 crore should have been paid to it rather than getting diverted to lenders of Odisha Slurry Pipeline India Limited.

During the hearing, NCLAT also enquired as to why the profits generated during corporate insolvency resolution process (CIRP) should go to the financial creditors, when in fact it is the operational creditors who have supported Essar during the process.

The NCLAT also directed a day-to-day hearing of the case and adjourned the matters to Tuesday.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 13 2019. 23:48 IST