The Supreme Court has ordered status quo in the Essar Steel insolvency case halting Arcelor Mittal's payment of Rs 42,000 crore. The apex court also ordered the NCLAT to expeditiously decide on the pleas pertaining to the case. NCLAT had approved the Arcelor Mittal's bid of Rs 42,000 crore after the case dragged on for almost 2 years. The NCLAT could ask Arcelor Mittal to deposit Rs 42,000 crore in a separate account or with the NCLT, Ahmedabad bench in the next hearing scheduled for April 23.
The lenders of Essar Steel Ltd on Wednesday informed NCLAT that a meeting of the committee of creditors (CoC) of the debt-ridden company is underway to finalise the distribution of the Rs 42,000 crore offered by global steel major ArcelorMittal SA. The NCLAT had on 20 March asked the resolution professional of Essar Steel to call for a fresh meeting of its CoC to reconsider distribution of the Rs 42,000 crore offer. NCLT Ahmedabad had suggested a 85:15 distribution between the financial and operational creditors as against the 90:10 distribution proposed in the resolution plan.