NCLT approves bankruptcy move against Essar Steel

AHMEDABAD: In a setback to Essar Steel Ltd, the Ahmedabad bench of the National Company Law Tribunal on Wednesday approved the launch of bankruptcy proceedings against the company. The tribunal, admitting petitions filed by the company’s lenders State Bank of India and Standard Chartered Bank, rejected Essar Steel’s contention that insolvency proceedings should not be initiated against the company as it had already started a debt restructuring process with its creditors. A senior counsel for Essar Steel said the company was yet to decide whether to challenge the NCLT ruling before the National Company Law Appellate Tribunal.