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ArcelorMittal bid for Essar Steel is a big scam - StanChart counsel

Steel News - Published on Mon, 11 Feb 2019

Image Source: Financial Express
Financial Express reported that last week Standard Chartered Bank’s counsel termed the bid made by ArcelorMittal for the distressed Essar Steel Limited as ‘big scam’ during the hearing of Essar Steel Insolvency Case. Arguing before the Ahmedabad bench of National Company Law Tribunal on Thursday, the SCB counsel said that instead of upfront payment of over INR 42,000 crore, ArcelorMittal submitted a plan of INR 39,500 crore and INR 2,500 crore for working capital. He further said that the profit being earned by Essar Steel which is monthly INR 180 200 crores per month shouldn’t belong to the bidder but it should be given to creditors. SCB counsel also raised concern over the role of resolution professional (RP) and committee of creditors (CoC) appointed sub-committee.

Earlier RP’s counsel stated that RP’s job is to present resolution plan to CoC for approval and he is not responsible for any decision. He told that “Role of RP is just that of a facilitator. It is CoC, which decides on Resolution Plan. Distribution mechanism is also decided by CoC. Both these plans were voted separately and passed with majority.”

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Posted By : Ratan Singh on Mon, 11 Feb 2019
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