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SC orders status quo in Essar insolvency case

Monitoring committee to continue its work till the case is heard on August 7

By PTI in New Delhi
  • Published 22.07.19, 11:46 AM
  • Updated 22.07.19, 11:46 AM
  • a min read
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An Essar Steel plant Source: Essar website

The Supreme Court on Monday ordered status quo as of today in the Essar insolvency case.

A bench headed by Justice R.F. Nariman said the monitoring committee would continue its work till the case is heard on August 7.

The bench was hearing a plea of the Committee of Creditors challenging NCLAT’s order of July 4 in which it had approved steel tycoon Lakshmi Mittal-led ArcelorMittal’s Rs 42,000 crore bid for the acquisition of Essar Steel after it rejected a plea by the lead shareholder of the debt-laden firm challenging the eligibility of the bidder.

The National Company Law Appellate Tribunal (NCLAT), however, gave operational creditors equal status as lenders in the distribution of the ArcelorMittal’s bid amount among the creditors of Essar Steel.

The company was auctioned under the new Insolvency and Bankruptcy Code (IBC) to recover Rs 54,547 crore of unpaid dues of financial lenders and operational creditors.