NEW DELHI: ArcelorMittal moved a step closer to acquiring Essar SteelNSE 0.00 % with the National Company Law Appellate Tribunal (NCLAT) allowing the implementation of its Rs 42,000 crore resolution plan for the debt-laden steel company, pending its final ruling.
It asked ArcelorMittal to deposit Rs 42,000 crore with the committee of creditors (CoC), which may disburse funds but the distribution will be subject to the tribunal’s ultimate decision.
“We are not going to interfere with the resolution plan. We have not passed a stay order,” said the two-member bench led by justice SJ Mukhopahdyaya on Monday. “We are looking into the question of apportionment to creditors.”
This means that ArcelorMittal’s resolution plan approved by the Ahmedabad bench of the National Company Law Tribunal (NCLT) can proceed.
The lenders of Essar Steel are likely to soon receive payments toward their dues in accordance with the plan but subject to any changes in case NCLAT modifies the distribution of funds under the proposal.
Essar Steel Asia Holdings (ESAH) had appealed against the NCLT’s rejection of its Rs 54,389 crore resolution plan.
ESSAR UNLIKELY TO CHALLENGE DECISION
On Friday, NCLAT had asked ESAH to withdraw its resolution plan.
“The resolution professional will be the chairperson of the monitoring committee and will act in accordance with law to ensure that the company is a going concern,” the tribunal said.
Essar is not likely to appeal against the decision in the Supreme Court, said people with knowledge of the matter.
Essar Steel was one of the 12 large accounts referr
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