gujarat banner
Homelegal News

Ruias may move court to challenge ArcelorMittal's bid for Essar Steel, says report

Ruias may move court to challenge ArcelorMittal's bid for Essar Steel, says report

Ruias may move court to challenge ArcelorMittal's bid for Essar Steel, says report
Profile image

By CNBC-TV18 Oct 30, 2018 10:29:53 AM IST (Published)

The Ruias may take the legal route to counter the offer made by ArcelorMittal for the Essar Steel, reported Financial Express.

Recommended Articles

View All

According to the report, Ruias have offered to pay Rs 54,389 crore to clear the dues to the lenders of Essar Steel. Hence, sources said, it is likely that they will challenge the resolution plan by filing an intervention petition with the National Company Law Tribunal (NCLT), said the report.
The development comes after the Committee of Creditors (CoC) last week decided to accept the offer made by ArcelorMittal who offered to pay Rs 42,000 crore. As per the report, the plan has been submitted by the resolution professional to get approval from NCLT.
The Ruias had come up with an offer last week that included an ‘upfront cash payment of Rs 47,507 crore to all creditors, including payment of Rs 45,559 crore to the senior secured financial creditors under Section 12A of the Insolvency and Bankruptcy Code (IBC) introduced in 2018 by way of an amendment,’ said the report.
According to the report, in addition to the Ruias, Essar Steel also faces legal hurdle in the form of a caveat petition filed by Standard Chartered Bank.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!