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SME Demand Higher Pay Out of Their Essar Steel Dues

Steel News - Published on Tue, 10 Dec 2019

Image Source: Essar Steel
Times of India reported that small and medium enterprises, who have formed an organization called Operational Creditors Association (Essar Steel), have pressed their demand that the committee of creditors for Essar Steel revise the distribution pattern to ensure full payment to them and have also threatened to stop supplying their demands are not met. In a letter to the government, they wrote “CoC has done injustice to us and kept only 2.5% of the amount in the Resolution Plan. Some 1,500 SMEs will be affected if CoC does not revise its decision. There will be job losses. INR 1,000 crore lent by Indian banks are likely to become NPA as SMEs will not be able to repay their loans.”

The association claimed that all the CoC decisions were taken by only financial creditors. They said “Not even a single member from operational creditors was given a place on the committee. So, our viewpoint for distribution is not taken into consideration anywhere.”

The association suggested that profit earned during resolution process be shared with operational creditors who have kept up supply.

Source :

Posted By : Arun Huidrom on Tue, 10 Dec 2019
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