Debt-ridden Essar Steel has registered an EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 4,229 crore during its Corporate Insolvency Resolution period (over 600 days).
In an affidavit filed before the National Company Law Appellate Tribunal (NCLAT) last week, its resolution professional has informed that the company earned Rs 4,000 crore from its operations between August 2017 and February 2019. In addition, the RP also mentioned an earning of Rs 229 crore for March this year.
Moreover, this amount "excludes Rs 734 crore EBITDA utilised for Finance Costs (Financial Lease, LC/BG Charges to banks and finance charges on payables to suppliers etc) for maintaining the Corporate Debtor (Essar Steel) as a going concern," the affidavit said.
The affidavit was filed following the directions of the appellate tribunal, which - on May 7, 2019 - directed the RP of Essar Steel to submit the details of earnings from operations of the company during the corporate insolvency period.
The affidavit, however, said that "figures from April 1, 2019 till date are not available".
Insolvency resolution proceedings of Essar Steel had commenced on August 2, 2017 after the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted by the NCLT, Ahmedabad Bench.
The Committee of Creditors (CoC) had voted in favour of Rs 42,000 crore take over plan of the global steel major ArcelorMittal.Later, the National Company Law Tribunal had also approved the ArcelorMittal's resolution plan, however, it had asked the CoC to look into the issues of distribution of money to the operational creditors of the company.
The operational creditors of Essar Steel are not satisfied with the CoC over the distribution of Rs 42,000 crore coming from the resolution plan by global steel major ArcelorMittal.
The CoC of Essar Steel has divided operational creditors of the company into two categories -- one with claims under Rs 1 crore and another above Rs 1 crore.
On May 16, the CoC had informed the NCLAT that out of Rs 42,000 crore coming from the resolution plan of ArcelorMittal, Rs 2,500 crore has been marked as the working capital of the debt-laden firm.
The CoC submission before a National Company Law Appellatre Tribunal (NCLAT) implied that only Rs 39,500 crore would be available for distribution among the financial and operational creditors.It had also informed the appellate tribunal that the actual upfront amount is Rs 39,500 crore and the rest Rs 2,500 crore has been committed as working capital for Essar Steel.