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Axis Bank to Knock SC Doors on NCLAT Order on Essar Steel

Steel News - Published on Fri, 12 Jul 2019

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PTI reported that Axis Bank also joined State Bank by going public with its displeasure on the recent NCLAT judgment putting secured creditors at par with the operational creditors. Axis Banks managing director and chief Mr Amitabh Chaudhry told “The NCLAT order does beg the question if this is how the proceeds will be shared, then secured creditors will ask why is the need to go to the IBC and not wait for liquidation. It is still unclear on what is the formula which was adopted by the NCLAT while approving ArcelorMittal’s INR 42,000-crore bid for the bankrupt flagship company of the Ruias-led Essar Group, which gave operational creditors equal status as the secured lenders.”

Mr Chaudhry said the banks will exercise their right of taking the matter to the Supreme Court and hoped clarity can emerge in the matter from the apex court.

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Posted By : Ratan Singh on Fri, 12 Jul 2019
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