ArcelorMittal's resolution plan for Essar Steel got green signal from NCLT Ahemdabad
- By Admin
- 3 Nov
The National Company Law Tribunal (NCLT) on Friday approved the resolution plan for Essar Steel and awarded the control of Essar Steel to ArcelorMittal.
Earlier the resolution plan was approved by the Committee of Creditors (CoC) of Essar Steel.
The NCLT stamped the resolution plan filed by Resolution Professional (RP), with a slight amendment. The NCLT suggested that the payment of Rs 42,000 crore to Essar Steel under resolution plan by ArcelorMittal be distributed among financial and operational creditors in the ratio of 85:15.
Earlier, the NCLAT asked the NCLT to take the decision on the Essar Steel fate by March 08, 2019.
Financial Creditors triggered the Insolvency against the Essar Steel almost two years back. The Essar Steel was one of the 12 accounts selected by the Reserve Bank of India to be resolved under Insolvency and Bankruptcy Code, 2016.