Essar Steel's Insolvency Proceedings Will Take More Time

The insolvency proceedings of the debt-laden Essar Steel may take more time to see the light at the end of the tunnel with the NCLAT asking CoCs and resolution professionals (RPs) to submit fresh plan to distribute the bid amount of Rs 42,000 crore.

Refusing to stay the NCLT’s Ahmedabad bench’s order approving Arcelor Mittal’s bid, the tribunal suggested that all operational creditors below Rs 1 crore should get 100% of the dues and so should the employees of Essar Steel. Only 90% of Rs 42,000 crore should be allowed for financial creditors. NCLAT will now hear the case on March 18.