The National Company Law Tribunal
(NCLT) will have to deal with an interesting but complex issue of the
increasing clash of interests between Committee of Creditors (CoC) and
Operational Creditors (OCs). This follows two public sector
companies GAIL and Gujarat Energy Transmission Corporation filing an
interlocutory application in the NCLT last week, seeking rejection of
ArcelorMittal’s resolution plan for Essar Steel. ArcelorMittal has offered to pay
Rs214 crore to more than 30 OCs against the total admitted claim of Rs 4,995
crore. Its resolution plan includes an upfront payment of Rs42,000 crore
against the overall admitted financial claim of Rs54,549 crore. The resolution
professional has rejected claim worth Rs14,727 crore. The two public sector companies
have sought the rejection of ArcelorMittal's application approved by the
Committee of Creditors to secure their cumulative claim of Rs 952 crore. If the
resolution plan is approved by NCLT, the operational creditors with over Rs1
lakh dues will not get any money back. The public-sector enterprises
have filed separate cases against Satish Kumar Gupta, resolution professional
of Essar Steel and State Bank of India, representing Committee of Creditors. Along with the three petitions
filed last week, operational creditors with dues of about Rs1,600 crore are
opposing ArcelorMittal resolution plan. In the case of Getco, which
supplied power for Essar Steel, the overall claim was Rs 827 crore and the
resolution professional has approved just Rs1. GAIL in its application said it
has a claim of Rs 907 crore towards non-offtake of gas. Of this, about Rs 125
crore has been admitted in the list of creditors of the company.
IBC: Clash of interests between CoC & OCs increasing
By IndianMandarins - 2018-11-20 11:08:42
The National Company Law Tribunal
(NCLT) will have to deal with an interesting but complex issue of the
increasing clash of interests between Committee of Creditors (CoC) and
Operational Creditors (OCs).
This follows two public sector companies GAIL and Gujarat Energy Transmission Corporation filing an interlocutory application in the NCLT last week, seeking rejection of ArcelorMittal’s resolution plan for Essar Steel.
ArcelorMittal has offered to pay Rs214 crore to more than 30 OCs against the total admitted claim of Rs 4,995 crore. Its resolution plan includes an upfront payment of Rs42,000 crore against the overall admitted financial claim of Rs54,549 crore. The resolution professional has rejected claim worth Rs14,727 crore.
The two public sector companies have sought the rejection of ArcelorMittal's application approved by the Committee of Creditors to secure their cumulative claim of Rs 952 crore. If the resolution plan is approved by NCLT, the operational creditors with over Rs1 lakh dues will not get any money back.
The public-sector enterprises have filed separate cases against Satish Kumar Gupta, resolution professional of Essar Steel and State Bank of India, representing Committee of Creditors.
Along with the three petitions filed last week, operational creditors with dues of about Rs1,600 crore are opposing ArcelorMittal resolution plan.
In the case of Getco, which supplied power for Essar Steel, the overall claim was Rs 827 crore and the resolution professional has approved just Rs1.
GAIL in its application said it has a claim of Rs 907 crore towards non-offtake of gas. Of this, about Rs 125 crore has been admitted in the list of creditors of the company.
