Lenders of Essar Steel claim that the offer made by the company’s promoters is not maintainable

By EDITORIAL BOARD - INSOL INDIA Posted On : December 14, 2018

Lenders of Essar Steel are seeking dismissal of company petition at the NCLT filed by the shareholders of the company, proposing to take out the company from the CIRP by settling the claims of its creditors as it is not maintanable. The CIRP of Essar Steel is past the period of 270 days stipulated by the Code. The committee of creditors had approved the INR 50,000 crores bid submitted by ArcelorMittal, earlier in November. A letter of intent was also issued to the successful applicant. However, a counter offer has been made by the promoters of Essar Steel, the Ruia family proposing to settle the entire admitted claims of the financial creditors, operational creditors, workmen and employees totalling to nearly INR 54,389 crores. Additionally, two separate petitions have been filed by a total of 28 operational creditors before the NCLT, seeking stay over the resolution process until their grievances are addressed.