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GAIL knocks NCLT doors against ArcelorMittal bid for Essar Steel

Steel News - Published on Tue, 20 Nov 2018

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The Telegraph reported that, aggrieved by ArcelorMittal’s resolution plan, after Getco, State-run gas utility GAIL (India) also filed interlocutory applications in the Ahmedabad-bench of NCLT, saying they have claims of worth INR 907 crore, of which about INR 125 crore has been admitted in list of the company’s creditors. According to the GAIL petition, “The resolution plan submitted is in contravention of Section 30 (2) of Insolvency and Bankruptcy Code, 2016. That even otherwise resolution plan is neither legal nor proper in the interest of all creditors. The resolution plan is arbitrary, irrational and illogical, and puts in jeopardy the interest of operational creditors and completely fails to protect the interest of operational creditors.”

They demanded that the company pay in full to all creditors or allow consideration of the INR 54,389 crore proposals of the Essar Steel owners.

This comes a week after a group of 29 operational creditors moved the Ahmedabad bench of NCLT seeking payment of dues worth INR 607 crore under the Insolvency and Bankruptcy Code. Claims of these operational creditors, including suppliers of ferroalloys, contractors and logistics service providers, had been verified by the resolution professional (RP) and admitted as dues payable in the Essar Steel case. The case is likely to come up for hearing on November 26.

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Posted By : Sanju Moirangthem on Tue, 20 Nov 2018
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