ArcelorMittal points to Essar Steel lenders’ backing in NCLAT
Lenders to Essar Steel feel that ArcelorMittal, “a serious and credible resolution applicant”, has displayed “a genuine intention and taken concrete steps” by attempting to clear overdues in defaulting firms where it was a shareholder.
This was stated by ArcelorMittal, with reference to the documents presented in the NCLAT on Wednesday.
A statement tweeted by ArcelorMittal said, “We welcomed the opportunity to begin presenting our case to the National Company Law Appellate Tribunal (NCLAT) today. We have consistently maintained our belief that our offer for Essar Steel India Limited (ESIL) is eligible and that we are the only credible resolution applicant for ESIL.”
The company further said the documents presented and discussed in court gave a clear picture of the Committee of Creditor’s (CoC) view, namely that ArcelorMittal is a “serious and credible resolution applicant” and that we have displayed “a genuine intention and taken concrete steps” to clear the overdues at companies in which we held a passive, minority shareholding.
People close to the development said Abhishek Manu Singhvi, appearing for ArcelorMittal, read out certain parts from the petition filed by the CoC during the hearing at NCLAT on Wednesday.
The CoC had given ArcelorMittal and Numetal seven days to cure the ineligibility in line with the National Company Law Tribunal (NCLT) order that pointed towards payment of overdues as a cure for ineligibility.
ArcelorMittal has transferred ~70 billion in escrow on account of its shareholding in Uttam Galva Steels and KSS Petron, both classified as NPAs for more than a year. The offer, however, was subject to ArcelorMittal being declared a successful and eligible bidder for Essar.
ArcelorMittal reiterated that the purpose of the IBC and Essar Steel’s insolvency process is for companies to submit resolution plans that offer value to creditors and provide Essar Steel with the best chance of having a successful future.