This means that lenders may have to forgo more than the earlier estimated Rs 41,987 crore, or 92 percent of their dues
This means that lenders may have to forgo more than the earlier estimated Rs 41,987 crore, or 92 percent of their dues.
The meeting of Committee of Creditors (CoC) was held on March 27 wherein lenders have asked for votes on the proposal from all banks that have an exposure to Essar Steel. The results are expected by March 30.
Unsecured lender Standard Chartered Bank, which made the highest claim of Rs 3,400 crore, has been excluded from the offer. As per the plan submitted by ArcelorMittal, the bank will receive only 1.7 percent, or Rs 60 crore, of its dues.
The bank has moved the National Company Law Appellate Tribunal (NCLAT) against the National Company Law Tribunal (NCLT) Ahemdabad order that had cleared ArcelorMittal’s plan, but suggested that operational creditors get 15 percent from the offer and financial creditors the balance.
ArcelorMittal had offered Rs 42,000 crore to the financial creditors as against Essar Steel’s dues of Rs 48,000 crore and said that it was up to the banks to divide the money amongst them.
Earlier this month, Dinabandhu Mohapatra, MD and CEO, Bank of India, had said a call on the apportionment of dues would be taken at the lenders’ meet after studying various aspects of the order.
NCLAT will hear the case again on April 9.