MUMBAI: The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked the resolution professional of Essar Steel to convene a fresh meeting of committee of creditors for reconsidering the proportion of money to be distributed between financial and operational creditors.
On Monday, the NCLAT had said the resolution plan for Essar Steel led by ArcelorMittal’s Rs 42,000 crore-bid can go ahead, pending appeal on the issue of the fair share and proportion of settlement operational creditors should get.
While hearing the Standard Chartered Bank’s appeal, the appellate tribunal said the March 8 order of the National Company Law Tribunal’s (NCLT) Ahmedabad bench approving the ArcelorMittal plan is to be followed in “letter and spirit”.
The case will be now heard on March 27. Dismissing the various petitions filed by the operational creditors and others earlier this month, the NCLT had quoted the Binani Cement order by NCLAT to suggest “a reasonable formula for apportionment is worked out so that 85 per cent of the amount offered by the resolution applicant is distributed among the financial creditors and the remaining 15 per cent of the amount amongst the rest of the operational creditors”.
Then the claim of operational creditors, which is around Rs 4,700 crore can be substantially paid off or at least operational creditors can get 50 per cent of their admitted and undisputed claim, it said.