In an interim relief, National Company Law Appellate Tribunal (NCLAT) on Wednesday has vacated its order for maintaining status quo over the sale of debt ridden Electrosteel Steels to Vedanta Ltd.
Earlier, Renaissance Steel had filed a petition before NCLAT, challenging the eligibility of Vedanta Ltd.
The appellate tribunal allowed Committee of Creditors (CoC) of Electrosteel Steels and Vedanta Ltd to proceed with resolution, making it the first among 12 large stressed accounts identified by RBI last year to get resolved under the Insolvency and Bankruptcy Code (IBC).
The NCLAT order said that Vedanta Ltd can proceed to make an upfront payment for resolution of Electrosteel Steels but subject to final NCLAT orders.
The resolution plan involved close to Rs 5,300 crore cash payout and a haircut of 60% of the total banks’ debt.
Electrosteel Steels owes lenders more than Rs 13,000 crore, of which about Rs 5,000 crore is to State Bank of India alone.
First Published: IST