Supreme Court Allows ArcelorMittal To Complete Deal To Acquire Debt-Laden Essar Steel

Supreme Court Allows ArcelorMittal To Complete Deal To Acquire Debt-Laden Essar Steel

The Supreme Court on Friday set aside the National Company Law Appellate Tribunal (NCLAT)’s order, allowing steel giant ArcelorMittal to complete its purchase of debt-laden Essar Steel. The order order came as a huge win for lenders who had challenged the bankruptcy appellate tribunal’s order which had given financial and operational creditors equal right over the sale proceeds. State-run banks are primary financial creditors of Essar Steel while its operational creditors are vendors and suppliers. The acquisition of Essar Steel India will make ArcelorMittal the fourth-biggest producer in the country.

Author: Anindita Ghosh