Operational Creditors with dues over Rs 1 Crore appeal to ArcelorMittal for Payment
A forum of operational creditors with more than Rs 1 crore in admitted dues from Essar Steel appealed to ArcelorMittal, which is in the process of acquiring the debt-ridden company, to pay their dues as well. Last October, a committee of Essar Steel creditors had picked ArcelorMittal to acquire the 10-million-tonne steel mill for more than Rs 42,000 crore. But the original promoters—the Ruias, made a counter bid with Rs 54,384-crore offer later and was rejected by the lenders and the resolution professional. The National Company Law Tribunal Ahmedabad has been directed by the National Company Law Appellate Tribunal to conclude the process by March 8. The resolution process is nearing 600 days instead of the mandated 270 days. ArcelorMittal’s resolution proposal also includes an additional Rs 8,000-crore of capital injection into the company to improve operational efficiencies, increase production and deliver enhanced levels of profitability.
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