ArcelorMittal’s takeover of Essar cleared by apex court
On 15 Nov, the three judge bench of the Supreme Court has accepted world’s largest steelmaker, Arcelor Mittal’s offer to pay an aggregate Rs 42,000 crore as an upfront amount to the secured financial creditors of bankrupt Essar Steel. This creates a path for Arcelor Mittal to take over Essar and enter the world’s second biggest steel market. The offer was approved by a bankruptcy tribunal under insolvency process but the payment was kept on hold by the apex court after a dispute arose between lenders on the distribution of funds. The apex court’s decision set aside a judgment of the National Company Law Appellate Tribunal (NCLAT), which held that the amount ought to be shared equally between financial creditors and operational creditors.