Close to 30 operational creditors of Essar SteelNSE 0.00 % have jointly moved the Ahmedabad bench of the National Company Law Tribunal (NCLT), seeking payment of dues worth over Rs 600 crore under the Insolvency and Bankruptcy Code (IBC). The move comes close on heels of a similar step being taken by Essar’s unsecured creditors like Standard Chartered and Deutsche Bank.
Claims of these operational creditors — including suppliers of ferro alloys, iron ore and fines and paints, and logistics service providers — had been verified by the resolution professional (RP) in the Essar Steel case and admitted as dues payable.
While the total admitted claims of operational creditors amount to Rs 4,995 crore, the successful resolution applicant, ArcelorMittal, has offered to settle only? 214 crore, mainly pertaining to medium and small enterprises, according to a source close to an operational creditor.
“The resolution professional has not even intimated us about the resolution plan submitted by ArcelorMittal and there is no communication whatsoever that the plan does not provide for payment to operational creditors,” one of the signatories to the application in NCLT said.
“The resolution plan of ArcelorMittal has no provision for payment of operational creditors with outstanding dues of more than ? 1 crore,” the joint application said.
An ArcelorMittal spokesperson said: “We have followed the IBC process in good faith since first submitting our EOI last year. We are confident that the process will be implemented correctly and according to the law, which does not allow for offers outside the process after EOIs have been submitted.”
Those who moved the tribunal said it was the duty of the committee of creditors (CoC) to ensure and approve a plan for the revival of the corporate debtor and that balances the interest of all stakeholders.
The applicants said they mainly depended on proceeds from Essar Steel.
Source: Economic Times