Lenders approved Essar Oil's exit from CDR cell: Sources

The core group of CDR cell met recently to take a call on Essar's exit from CDR This core group consists of the members of the CDR cell which includes SBI, Punjab National Bank, Bank of Baroda, Bank of India among others. They will be deciding if Essar Oil should be allowed.

The company's exit plan got delayed because of various reasons including the Gujarat High Court slapping a tax liability of Rs 6,300 crore on the company. It was also over the lack of consensus between the bankers and the company over how much compensation that it has to pay bankers to exit CDR. The company has to pay a recompense or a compensation to bankers.

Compensation is like a form of sacrifice amount which the bankers took and therefore the company has to compensate the banks for that. Previously there was a lack of consensus. Bankers were asking for say a recompense of around Rs 800 crore from the company, but the company has only provided around Rs 322 crore in the Q4 last year.