TT: Reliance twist to Essar case

31 January 2019: Reliance Industries, India’s biggest company by market capitalisation, has waded into the Essar Steel bankruptcy case, the fiercest legal battle raging in India’s insolvency landscape.

The company, majority owned by Asia’s richest man billionaire Mukesh Ambani, has filed two applications before the National Company Law Tribunal (NCLT), Ahmedabad.

The applications will come up for hearing on Thursday and the bench, comprising Harihar Prakash Chaturvedi and Manorama Kumari, is likely to take up the applications for hearing before admitting them. There are 44 other applications listed for hearing.

In one of the applications, Satish Kumar Gupta, the resolution professional (RP) in Essar Steel India Ltd, has been made the respondent.

In the other case, the State Bank of India, which has the biggest say in the committee of creditors because it has the highest exposure valued at Rs 15,431 crore, has been made the main respondent.

RIL is listed as one of the operational creditors to Essar Steel with a total claim valued at Rs 16.41 crore. However, the RP rejected as much as Rs 15.42 crore of RIL’s claim against Essar and admitted a little over Rs 99 lakh.

The Reliance move comes at a crucial stage in the 18-month battle for control of Essar Steel between the Ruias and Lakshmi Niwas Mittal-owned ArcelorMittal.

ArcelorMittal, the world’s largest steelmaker, is on the verge of gaining control of Essar Steel after the NCLT ruled on Tuesday that the Ruias-led consortium’s offer of Rs 54,389 crore was not maintainable under the rules governing the bankruptcy resolution process.

The 8-million-tonne prized asset located on the west coast in Gujarat, where RIL’s jumbo refinery and petrochemical complex is also based, will provide a much needed toehold to Mittal in his home soil India, which has emerged as one of the brightest investment spots in global steel landscape.

eliance Industries, India’s biggest company by market capitalisation, has waded into the Essar Steel bankruptcy case, the fiercest legal battle raging in India’s insolvency landscape.

The company, majority owned by Asia’s richest man billionaire Mukesh Ambani, has filed two applications before the National Company Law Tribunal (NCLT), Ahmedabad.

The applications will come up for hearing on Thursday and the bench, comprising Harihar Prakash Chaturvedi and Manorama Kumari, is likely to take up the applications for hearing before admitting them. There are 44 other applications listed for hearing.

In one of the applications, Satish Kumar Gupta, the resolution professional (RP) in Essar Steel India Ltd, has been made the respondent.

In the other case, the State Bank of India, which has the biggest say in the committee of creditors because it has the highest exposure valued at Rs 15,431 crore, has been made the main respondent.

RIL is listed as one of the operational creditors to Essar Steel with a total claim valued at Rs 16.41 crore. However, the RP rejected as much as Rs 15.42 crore of RIL’s claim against Essar and admitted a little over Rs 99 lakh.

The Reliance move comes at a crucial stage in the 18-month battle for control of Essar Steel between the Ruias and Lakshmi Niwas Mittal-owned ArcelorMittal.

ArcelorMittal, the world’s largest steelmaker, is on the verge of gaining control of Essar Steel after the NCLT ruled on Tuesday that the Ruias-led consortium’s offer of Rs 54,389 crore was not maintainable under the rules governing the bankruptcy resolution process.

The 8-million-tonne prized asset located on the west coast in Gujarat, where RIL’s jumbo refinery and petrochemical complex is also based, will provide a much needed toehold to Mittal in his home soil India, which has emerged as one of the brightest investment spots in global steel landscape.

The Telegraph reported

 

 



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