The National Company Law Tribunal approved Luxembourg based steel company ArcelorMittal to take over Essar Steel.
- ArcelorMittal has proposed to offer Rs 42,000 crore as the resolution plan and infuse another Rs 8,000 crore of working capital in Essar Steel.
- Essar Steel owes Rs 69,192 crore to its financial and operational creditors together.
- Ruia Brothers alleged that ArcelorMittal was ineligible to bid for Essar Steel under the Insolvency and Bankruptcy Code.
- Also, they filed a petition against ArcelorMittal and made a counteroffer of Rs 54,389 crore, with a promise to clear all of the admitted claims of creditors at the time
- The Ahmedabad bench of the NCLT rejects Ruias’ plea to consider their offer, stating Supreme Court had already cleared the takeover bid.
- ArcelorMittal was finding difficulty for a very long time in entering India’s steel market which is dominated by local players