29 March 2019: Thecommittee of creditors (CoC) in the Essar Steelinsolvency caseis likely to vote against higher payments toStandard Chartered, but may partly increase the amount operational creditors get as part of the settlement offered by ArcelorMittal, said people with knowledge of the matter.
The CoC doesn’t want the plan changed as suggested by the National Company Law Appellate Tribunal (NCLAT) because this will eat into their own payouts. Lenders could file a caveat in the Supreme Court if theNCLATdoesn’t budge on its proposal, said the people cited above.
The CoC led by State Bank of India (SBI) is slated to meet on Friday to vote on whether operational creditors will get a bigger amount as proposed by the NCLAT. Also on the agenda is a vote on whether Standard Chartered will be given a share on a par with other lenders.
“Operational creditors and what to do with Standard Chartered’s dues are two issues in front of the CoC. It is unlikely that lenders will agree to give more because the amount the NCLAT has asked is too much,” said one of the persons cited above.
“We may have to file a review in Supreme Court if the NCLAT sticks to its suggestion.”