Essar Statement - Essar | Creating Value

Essar Statement

Jan 23rd, 2019

 

“The proposal made by Essar Steel shareholders provides for payment of a total of Rs 54,389 crores to various creditors, which exceeds the resolution plan currently approved by the creditors by more than Rs 12,000 crores. This proposal has been submitted under the recently introduced Section 12A of the IBC. Under the proposal made by the shareholders, all classes of creditors would receive full recovery of their claims.

Under the provisions of the IBC, a proposal made under Section 12A is to be decided between the creditors of Essar Steel and the Company. Creditors have already been provided all relevant information on the proposal. No request has been received from the committee of creditors of Essar Steel regarding any further information that they need in this regard. There is no requirement to provide any such details to a resolution applicant. It is therefore surprising to note comments made to the media by a resolution applicant regarding them not having received the details of the proposal.

The overriding objective of the IBC is maximization of recovery for creditors and this has been established time and again by courts at all levels. Creditors of Essar Steel, including operational creditors, should not be forced to accept a resolution plan which undervalues the company and its assets.”

This can be attributed to an Essar Spokesperson.

Media Contact:

Manish Kedia, Senior Vice President – Corporate Affairs, Essar
Phone: +91 98197 30092, Email:  manish.kedia@essar.com

Ravi Muthreja, Vice President – Corporate Communication, Essar
Phone: + 91 99301 34566, Email : Ravi.Muthreja@essar.com