BUSINESS

ArcelorMittal may have to deposit bid amount of Rs. 42,000 cr.: NCLAT

Bid terms:ArcelorMittal may have to deposit the money in aseparate account before NCLAT or NCLT Ahmedabad.afp

Bid terms:ArcelorMittal may have to deposit the money in aseparate account before NCLAT or NCLT Ahmedabad.afp  

Firm told to file affidavit on steps taken to execute Essar Steel resolution plan

The National Company Law Appellate Tribunal said on Tuesday it may direct global steel major ArcelorMittal to deposit the Rs. 42,000-crore bid amount for acquiring Essar Steel, in separate accounts, during the next hearing on April 23.

A two-member bench headed by Chairman Justice S.J. Mukhopadhaya said that ArcelorMittal may have to deposit the money in a separate account either before the NCLAT or NCLT Ahmedabad-bench.

The bench also asked ArcelorMittal to file an affidavit before it, detailing the steps to be taken for implementation of the resolution plan of debt-ridden Essar Steel.

The bench also said that the original plan approved by NCLT Ahmedabad had to be implemented. The bench also directed the operational creditors and financial creditors of Essar Steel to file a chart next week, detailing their claims approved by the resolution professional and CoC.

“Financial creditors and operational creditors are allowed to file a one-page affidavit giving details of their claims approved by RP and its percentage,” it said.

Moreover, it has also asked the Gujarat State Tax department to file an affidavit over its claims.

The NCLAT was hearing a batch of petitions filed by operational creditors, Gujarat State Tax department and others.

ArcelorMittal’s resolution proposal provides financial creditors Rs. 41,987 crore out of their total dues of Rs. 49,395 crore.

Recommended for you