Supreme Court ruling on Essar Steel case
The Supreme Court on Friday ordered a stay on the case of Essar Steel Bankruptcy case. ArcelorMittal to pay Rs. 42,000 crores to be stopped. The Appeal Tribunes ordered all the requests for this case to take a quick look and take the final decision. The Supreme Court has ordered Arcelor Mittal to stop paying the amount for the purchase of Essar Steel. Laxmi Mittal, who is going to enter the domestic steel market, will have more downturn. Mittal is the fourth largest steel producer in the country if the deal is completed. Arcelor hoped to invest Rs 1,000 crore on the company after the purchase.
The bankruptcy court had allowed Arcelor to invest over $ 110 billion to acquire the company for $ 600 crores for Essar creditors. But there is no consensus among the lenders about how to share the proceeds. Thus, SBI, one of the lenders, has approached the Supreme Court. The Supreme Court has issued a mandate to the Supreme Court. The NCLL said it would refer to Arcelor for a separate account of Rs 42,000 crore paid to creditors as part of the case. In addition, the company is also required to submit the plan to follow. In addition, the details of the creditors’ meeting will also be examined. Experts say that the final decision will be made after all of these are scheduled.