Moneycontrol
Last Updated : Mar 08, 2019 11:40 AM IST | Source: Moneycontrol.com

NCLT to pass order on Essar Steel insolvency case later today; ArcelorMittal favourite, all eyes on Ruias

The deadline to pronounce the over gets over on Friday

Moneycontrol News @moneycontrolcom

The Ahmedabad bench of the National Company Law Tribunal (NCLT) will on March 8 deliver its verdict on the Essar Steel insolvency case.

The case is listed to be heard in the second half of the day, and is number 10 on the Cause List. Purpose of the hearing: 'Pronouncement order'. Essar Steel is the biggest, and probably the most debated, insolvency case from the Reserve Bank of India's (RBI) first list of bankrupt companies referred to NCLT.

The hearing comes after a deadline set by the National Company Law Appellate Tribunal (NCLT) during its hearing on February 28. The Appellate Tribunal had said it may pass an order, if the NCLT failed to do so by March 8.

The order will be on ArcelorMittal's Rs 42,000 crore offer, which was received the backing of Essar Steel lenders. The banks had refused to consider the last-minute proposal of Essar Steel Asia Holdings - controlled by the Ruias - despite it being higher at Rs 54,000 crore.

Earlier this week, operational creditors of Essar Steel had appealed to ArcelorMittal to consider their arrears also in the bid offer. Till now, the LN Mittal-company's offer hadn't included them.

Sources said the NCLT may ask ArcelorMittal to increase its offer to include payments to operational creditors too.

But it remains to be seen if the insolvency saga - which has been on for over a year - will end with today's order. The eyes of the industry will be on the Ruias, and what their next step would be, in case the bench rules in favour of ArcelorMittal's offer.
First Published on Mar 8, 2019 11:37 am
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