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Operational creditors face Shakespearean dilemma in Essar Steel insolvency

The challenge for RPs is to determine how to keep the company a 'going concern' without giving in to all the demands from operational creditors

Essar Steel
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Aashish Aryan
The operational creditors of steel companies face a Shakespearean dilemma. Though they wish to speak out against the problems at hand due to delayed payments of dues from companies undergoing the Corporate Insolvency Resolution Process (CIRP), they fear retribution from the committee of creditors (CoC) and the new management which would take over.
 
“These companies are largely small-time operators and do not wish to sour their relationship with the new management. They are fearful whether a big company would want to continue their contract with them or not,” said Anand Verma, an advocate-on-record of the Supreme Court, who has

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First Published: Mar 31 2019 | 9:32 PM IST

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