February 25, 2020
The NCLAT DIN935 HEX NUT Suppliers would continue the hearing
The NCLAT would continue the hearing in the matter on Wednersday."Moreover, the offer of additional Rs 1,000 crore given to the additional creditors has no meaning in law, as it requires equal treatment to financial and operational creditors," he said..According to the resolution plan of ArcelorMittal approved by CoC on October 24, 2018, operational creditors having claims below Rs 1 crore will get their dues and those with claims of over Rs 1 crore will receive almost zero.Financial creditors would get an upfront Rs 41,987 crore payment against their admitted claims of Rs 49,395 crore while operational creditors are getting Rs 214 crore against their dues of Rs 4,976 crore.According to advocate Anand Verma, who is representing operational creditors, the banks, which are financial creditors, are getting almost 90-92 per cent of their dues.
Later, the CoC decided to allocate an additional Rs 1,000 crore to operational creditors after the NCLT and the NCLAT suggested it to rework on the distribution of funds.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.According to a notice published earlier, the total dues of operational creditors with below Rs 1 crore claim is only around Rs 200 crore and the dues of operational creditors with above Rs 1 crore claim stood at Rs 4,900 crore.
The NCLAT DIN935 HEX NUT Suppliers would continue the hearing in the matter on Wednersday.During the proceedings, the NCLAT bench headed by Chairman Justice S J Mukhopadhaya said that the operational creditors cannot not be treated differentially.Last week, the Supreme Court stayed the payment of money by ArcelorMittal to lenders to buy Essar Steel over a petition filed by various stakeholders. New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday observed that the Committee of Creditors of Essar Steel cannot discriminate between operational creditors of the debt-ridden firm.However, senior advocate Gopal Subramanium,
representing the CoC said that the Supreme Court in a judgement has said that financial creditors and operational creditors could not be treated at par. You can not discriminate among operational creditors on the basis of their dues," the NCLAT said."We have said that you cannot discriminate among the same set of creditors. 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
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February 19, 2020
NuMetal sought setting aside and quashing of the NCLT order
The NCLAT took up the petitions on a day when a panel of lenders to Essar Steel is slated to meet to decide if fresh bids are to be called. The cross petitions were mentioned before a bench of NCLAT which issued notices, replies and rejoinders of which are to be filed within one week.
NCLAT on Friday agreed to hear on May 17 cross petitions filed by Essar Steel bidders, NuMetal Ltd and ArcelorMittal India Ltd.The NCLAT took up the petitions on a day when a panel of lenders to Essar Steel is slated to meet to decide if fresh bids are to be called. The matter has been fixed for hearing on May 17.Russia&hex nut Manufacturers39;s VTB Capital-backed NuMetal Ltd has challenged a lower company court order allowing rival ArcelorMittal to clear bank dues of associate companies so that it can become eligible for acquisition of Essar Steel.
NuMetal sought setting aside and quashing of the NCLT order that directed the resolution professional (RP) conducting the auction and the committee of creditors of Essar Steel India Ltd to "reconsider the resolution plan submitted by Arcelor Mittal India Pvt Ltd and afford Arcelor Mittal India Ltd an opportunity to make payment of the over dues amount of Uttam Galva Steels Ltd and KSS Petron Pvt Ltd after the submission of the resolution plan for Essar Steel and cure the ineligibility". In the petition, NuMetal said the Ahmedabad-bench of National Company Law Tribunal had disqualified Arcelor Mittal India Ltd from bidding to acquire Essar Steel on grounds that it was a promoter company of firms that had defaulted on payment of bank loans.
The NCLT had, however, "erred" in permitting ArcelorMittal India Ltd "to cure the ineligibility by making payment of the overdue amounts of Uttam Galva and KSS Petron" within 30 days, it said. ArcelorMittal in a separate petition challenged its disqualification on the grounds that it had exited Uttam Galva before submitting a bid for Essar Steel on February 12.Allowing ArcelorMittal to clear dues after the government frame legislation, barring promoters who had defaulted on bank loans from bidding for companies that were being auctioned to recover unpaid loans, was not in accordance with the law, it contends.ArcelorMittal on the other hand has challenged its disqualification from bidding.
The National Company Law Appellate Tribunal (NCLAT) on Friday agreed to hear on May 17 # cross petitions filed by Essar Steel bidders, NuMetal Ltd and ArcelorMittal India Ltd, challenging eligibility criteria.The NCLAT issued notices to a committee of Essar Steel creditors, the resolution professional running an auction of the company and the two bidders on the cross petitions.Essar Steel had a debt of Rs 49,000 crore and was referred to NCLT in June last year
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