Supreme Court orders status quo in Essar Steel insolvency case

2019-07-23

Jul. 23, 2019 - India’s Supreme Court has ordered status quo in the Essar insolvency case. A bench headed by Justice R F Nariman said the monitoring committee will 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 ArcelorMittal’s INR 42,000 crore bids for the acquisition of Essar Steel but gave operational creditors equal status as lenders in the distribution of the ArcelorMittal’s bid amount among the creditors of Essar Steel.

Essar Steel was auctioned under the new Insolvency and Bankruptcy Code to recover INR 54,547 crore of unpaid dues of financial lenders and operational creditors.