The National Company Law Appellate Tribunal today gave a conditional nod to ArcelorMittal’s resolution plan for debt-ridden Essar Steel.
Stating that there was no stay on the ArcelorMittal’s resolution plan, the Appellate Tribunal directed for the constitution of a Monitoring Committee to “ensure that Essar Steel remains a going concern”.
The Committee would be headed by the Resolution Professional who would implement ArcelorMittal’s Resolution Plan in accordance with law.
The implementation is, however, subject to the final outcome of the proceedings before the Appellate Tribunal, it was clarified.
The order was passed by a two-member Bench of the Appellate Tribunal, headed by Chairperson Justice SJ Mukhopadhaya while hearing a batch of appeals moved against the approval of ArcelorMittal’s resolution plan for Essar Steel.
Apart from allowing the Resolution Professional to disperse the amount promised in the Rs. 42,000 Resolution Plan, the Appellate Tribunal today also directed the Insolvency and Bankruptcy Board of India to file an affidavit stating the average payment received by a corporate debtor’s financial and operational creditors in a corporate insolvency resolution process.
The Appellate Tribunal also directed Standard Chartered, one of the appellants against ArcelorMittal’s resolution plan, to establish if it was entitled to the amount being claimed by it from Essar Steel, given that Essar Steel was only a guarantor and not the principal debtor.
Courtesy/By: Sakshi Shukla
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19 Mar 2019
