Tata Steel UK CEO Bimlendra Jha has resigned from the post, a source said. “Bimlendra Jha, the CEO of Tata Steel UK, has resigned. Ashish Anupam of NatSteel Holdings will be looking after the business,” the source said. The source, however, did not divulge information about the reason for the resignation. Tata Steel is in the process of merging its European operations with German steel major Thyssenkrupp AG to create a 50-50 joint venture. The proposed new company will be Europe’s second largest steelmaket after ArcelorMittal. In October 2018, the EU launched antitrust proceedings against the JV.
Labour leaders, who hold half of the 20 seats on Thyssenkrupp's supervisory board, will not support the planned joint venture with Tata Steel if concessions in ongoing antitrust proceedings go too far. Thyssenkrupp and Tata Steel are planning to combine their European steel activities to create Europe’s second-largest steelmaker after ArcelorMittal. The combined entity will have around 48,000 workers and about 17 billion euros ($19.4 billion) in sales. “We won’t support a merger at any price,” Markus Grolms, vice chairman of Thyssenkrupp’s supervisory board and secretary at IG Metall, Germany’s biggest labour union, told Reuters on Wednesday.
The National Company Law Appellate Tribunal (NCLAT) on Tuesday granted NCLT Ahmedabad another 7 days to decide over the Rs 42,000 crore resolution plan submitted by ArcelorMittal for the debt ridden Essar Steel. The decision will now have to be taken by February 19 as against the earlier February 11. During the hearing, NCLAT was informed that while NCLT, Ahmedabad bench has heard the plea by operational creditors, it is scheduled to hear suspended Essar directors on Tuesday. The committee of creditors of Essar Steel had approved the ArcelorMittal resolution plan. Essar Steel owns a 10-million-tonne steel mill in Gujarat.
The Supreme Court has rejected the pleas filed by the operations creditors of Essar Steel, seeking a stay on a National Company Law Appellate Tribunal (NCLAT) order asking the NCLT Ahmedabad to decide upon the debt-laden company's insolvency case by February 11. Now the NCLT will be bound to pass the insolvency order within the stipulated date. The Supreme Court on Monday said the Essar promoters are acting through operational creditors, people and proxies to delay the insolvency process and it has been 571 days since the inception of the insolvency proceedings.
The counsel for Standard Chartered Bank, during the insolvency hearing on Thursday, termed the bid by ArcelorMittal for the bankrupt Essar Steel as a ‘big scam’. Presenting the case before NCLT, Ahmedabad bench, the counsel said the world’s largest steel producer’s Rs 42,000 crore resolution plan offered to repay lenders Rs 39,500 crore only, while Rs 2,500 crore would be infused for working capital. The counsel argued that the monthly profit of Rs 180-200 crore made by Essar Steel should also be given to creditors. The counsel also questioned the role of resolution professional and committee of creditors (CoC).
The National Company Law Appellate Tribunal (NCLAT) on Monday has directed the NCLT Ahmedabad bench to take a final decision over ArcelorMittal's Rs 42,000 crore debt resolution plan for Essar Steel by February 11, failing which it would call for records and pass an order accordingly. The appellate tribunal has directed the NCLT to give hearing only to the representative of the operational creditors of the debt-ridden Essar Steel. The NCLAT also directed to give limited hearings to the promoters of the Essar Steel but asked NCLT to complete the entire process within the next five days.
SBI MD Dinesh Khara said the state-owned lender is examining a possibility to sell Essar Steel loans, after the National Company Law Tribunal (NCLT) rejected Ruia family's bid for the insolvent company. The NCLT Ahmedabad rejected Essar Steel promoter Ruia family's plea to repay debt, effectively putting an end to the group's attempt to hold on to the company. The resolution professional will now present ArcelorMittal’s Rs 42,000 crore plan before the NCLT for approval. The Essar group is expected to challenge the order.
The National Company Law Appellate Tribunal (NCLAT) on Wednesday declined the plea of an operational creditor of debt-ridden Essar Steel, seeking recovery worth Rs 800 crore. The tribunal refused to entertain the plea by operational creditor Kamaljeet Singh, who had requested NCLAT to direct the Ahmedabad bench of National Company Law Tribunal (NCLT) to hear his plea before taking any decision on ArcelorMittal resolution plan.
The NCLT Ahmedabad bench on Tuesday rejected the last-minute offer by Essar Steel’s promoters to pay off their lenders and wrest control of the debt-laden company. It said that there was no irregularity in the lenders’ decision to accept the bid by ArcelorMittal. The CoC, led by SBI, had in October last year approved the Arcelor-Mittal resolution plan for Rs 42,000 crore. Essar’s promoters, the Ruias, had offered to pay Rs 54,389 crore to settle the matter outside the ambit of the insolvency proceedings. ArcelorMittal had also offered to invest another Rs 8,000 crore into the alloy maker.
JSW Steel Ltd will support Ruia family’s effort to win back control of Essar Steel Ltd, reported LiveMint, citing people close to the development. According to the report, sources have said that JSW is in talks to become an equity partner with the Essar group, along with foreign financial investors. Ruias have offered to repay the bulk of Essar Steel’s Rs 54,550 crore debt. The offer is significantly higher than the Rs 42,000 crore bid by ArcelorMittal that was approved by the bankrupt steel maker’s committee of creditors (CoC).
ArcelorMittal SA, the world's largest steelmaker, is set to build it’s first-ever desalination unit in Brazil. The unit will be set up to handle unforeseen water needs at its plant in the eastern state of Espirito Santo, senior company executives said. The unit is aimed at lessening the company's dependence on state water utility company Cesan and avoiding production cuts at times of water crises as the state suffered in 2015 and 2016.