Essar Steel CoC urges NCLAT to expedite insolvency resolution process
Press Trust of India reported that lenders to Essar Steel on Wednesday urged the NCLAT to complete its insolvency resolution process in "quick" time, saying the debt-ridden company is incurring a daily loss of INR 17 crore. At a hearing of the National Company Law Appellate Tribunal (NCLAT), Sudipto Sarkar, counsel appearing for the Committee of Creditors (CoC) of Essar Steel, requested it to expedite the process. He said "We want a quick resolution. Essar Steel is suffering a daily loss of INR 17 crore."
Sarkar also said that based on the order of the NCLT, the lenders had given an opportunity of being heard to Numetal and ArcelorMittal, after which both were found to be ineligible to bid for the company.
Senior advocate Darius Khambatta, appearing for the Resolution Professional, stated that the RP had found both ArcelorMittal and Numetal to be ineligible.
Under the Insolvency and Bankruptcy Code (IBC), CoC and Resolution Professional (RP) have to complete the Corporate Insolvency Resolution Process (CIRP) in 180 days. This can be extended for another 90 days by the NCLT, failing which the stressed firm goes for liquidation.
Source : Press Trust of India