Arcelor Mittal enters India by acquiring Essar Steel via IBC route
After a long-drawn legal battle, the Supreme Court of India on November 15 gave the ruling that ArcelorMittal can acquire Essar Steel for Rs 42,000 crore. The apex court overruled the appellate tribunal NCLAT which asked the banks to share the proceeds equally with the unsecured creditors as well. The apex court's ruling is a landmark in the short history of insolvency and bankruptcy resolution in India. The verdict has clarified on important aspects of insolvency resolution that had been interpreted variously by the National Company Law Tribunal ( NCLT ) and the National Company Law Appellate Tribunal ( NCLAT ). Essar Steel was among the first list of the largest 12 stressed accounts that the Reserve Bank of India had drawn up in June 2017 and asked banks to refer to the NCLT and the company was formally sent to the tribunal on June 27, 2017. In fact, the Ruia family lost control of Essar in July 2017 including Essar Steel. Essar Oil was sold to a Rosneft-led group in 2017. T...