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SBI moves to Supreme Court against NCLAT suggestion in Essar Steel case

Steel News - Published on Wed, 03 Apr 2019

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Express News Service reorted that State Bank of India has moved the Supreme Court against the National Company Law Appellate Tribunal order suggesting that the committee of creditors consider a higher payout for Standard Chartered Bank in the Essar Steel insolvency case, a move that is set to further delay resolution of the 21-month-old insolvency case.

NCLAT had asked lenders to re-look at the apportioning of dues to Standard Chartered and operational creditors and consider the 85:15 formula suggested by NCLT Ahmedabad for distribution of INR 42,000 crore offered by ArcelorMittal. On Saturday, however, the CoC unanimously voted against a higher payout to Standard Chartered and sought to curtail payment to the private lender at INR 60.71 crore as originally envisaged.

Apart from SBI, which has the largest exposure in Essar Steel, the other creditors, including IDBI Bank, ICICI Bank and Edelweiss ARC, who have formed a core committee to take a decision on behalf of lenders, don’t want the plan changed as it will eat into their payouts and could file a caveat in the Supreme Court if the NCLAT did not rework its proposal.

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Posted By : Rabi Wangkhem on Wed, 03 Apr 2019
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