Business/ News Measurements Network
Public sector Company GAIL India and Gujarat Energy Transmission Corporation (GETCO) of Gujarat have approached the National Company Law Tribunal (NCLT) with the demand to dismiss ArcelorMittal plan for the acquisition of Essar Steel. Both of these say that the business interests of business lenders lending Essar to the interests of the business have been abandoned in this acquisition plan.
Essar Steel's financial lenders (banks and financial institutions) accepted ArcelorMittal proposal to buy the acquisition of this company for a loan of about Rs 42,000 crore in the last month. The total outstanding of the banks on Essar Steel is Rs 49,395 crore, while ArcelorMittal has bid to pay Rs 41,987 crore. Under the scheme, Essar Steel will be given only 214 crore rupees for various types of raw materials and other services, while their total outstanding is Rs 4,976 crore.
Angered by ArcelorMittal proposal, Gayle and GETCO have filed separate applications for hearing their participation in the NCLT's Ahmedabad Bench. It has been stated in the application that he owes Rs 1,800 crore to Essar Steel India, which has not been paid. Gail, in his plea, urged to dismiss ArcelorMittal acquisition plan, saying that this solution plan has been completely unsuccessful in protecting the interests of operating lenders.
In another petition, GETCO has demanded to include its total outstanding 896.52 crore rupees on Essar Steel and said that if the entire dues are not given, then the solution plan of ArcelorMittal should be dismissed.