Decision on Essar Steel's Insolvency case to be Announced Today

The verdict on long pending insolvency case of Essar Steel is likely to be announced later today by the Ahmedabad bench of the National Company Law Tribunal (NCLT) as the case is listed to be heard in the second half of the day.

Essar Steel has been one of the most debated insolvency cases in RBI's first list of bankrupt companies referred to NCLT. In case if NCLT fails to announce its final verdict on Essar Steel's case today, the NCLAT (National Company Law Appellate Tribunal) may pass the final order which means that the chances of any major delay in the final verdict of the case are unlikely.

Essar Steel that has long been caught up in the IBC proceedings with over INR 50,000 crore at stake, has been fought over by numerous bidders including Numetal, Vedanta group, JSW Steel Ltd and ArcelorMittal. However, after several rounds of bidding, only ArcelorMittal has emerged as the chosen bidder by Essar Steel's creditors whereas the banks had refused to consider the last-minute proposal of Essar Steel'S promoters, Ruias - despite their offer being higher at INR 54,000 crore. The NCLT's decision on today will decide the company's fate and who will take over it.

Earlier this week, operational creditors of Essar Steel had appealed to ArcelorMittal to consider their arrears also in the bid-offer but Arcelor Mittal's offer hadn't included them. Market participants believe the NCLT may ask ArcelorMittal to increase its offer to include payments to operational creditors too.