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Lakshmi Mittal, President and CEO of ArcelorMittal. Photo: AFP
Mumbai: The voting process for the approval of the resolution plan submitted by ArcelorMittal Netherlands NV for Essar Steel Ltd was delayed due to minor technical issues and the result of the vote, which was to be announced Wednesday night, has been postponed and will be announced Thursday.
Certainly after the Creditors Committee (CoC) of a company being resolved under the Insolvency and Bankruptcy Code (IBC) announced that the best bidder or the highest bidder (H1) was announced, the resolution plan presented by the bidder being submitted to electronic voting. by at least 66% of the creditors, the resolution plan is then submitted to the National Corporate Law Tribunal (NCLT) for approval.
The company ArcelorMittal, headed by Lakshmi Mittal, agreed to pay in advance 42,000 crore rupees to the creditors of the creature. steel company. In addition, the largest steelmaker in the world will also inject Essar Steel over a period of Rs 8,000 crores, which will enable the company to obtain a total of Rs 50,000 crores for its own sake. to implant in the Indian market.
The fully integrated 10 million-ton steel mill located in the port city of Hazira, in the state of Gujarat, is a lengthy process, which has been the subject of numerous appeals from offers, until the Supreme Court intervenes to try to find a solution. [19659003] Last Friday, the Creditors Committee of Essar Steel declared ArcelorMittal the highest bidder after the choice went to Vedanta Ltd., former defender promoted by Anil Agarwal. The creditors had discussed the inadmissibility of the proposal after the bankruptcy of the consortium led by VTB Bank. to comply with a Supreme Court directive to settle outstanding debts in related companies.
Nevertheless, the Russian bank VTB Bank, the main shareholder of the Numetal Mauritius consortium, also filed an appeal. before the Supreme Court, requesting authorization to submit a new offer on Essar Steel, either on its own or with a new technical partner.
While awaiting this final, ArcelorMittal also had to pay Uttam unpaid sums in the amount of Rs 7.469 crore. Galva Steels and KSS Petron, two companies in which Mittal had acted as promoter, lifted the bid eligibility barrier for Essar Steel. Under Article 29A of the IPC, bidders can not be connected to other entities in default. Essar Steel has accumulated a debt of more than 49,000 crores of rupees.
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