Promoters of Essar Steel Ltd., the Ruia family, have offered to repay creditors of the steel firm in an attempt to withdraw it from the insolvency resolution process.
In a press statement on Thursday, the companys shareholders said they are willing to pay Rs 54,389 crore to creditors. The company said that Essar shareholders will offer upfront cash payment of Rs 47,507 crore to all creditors. This included Rs 45,559 crore to the senior secured financial creditors.
Under Section 12A of the Insolvency and Bankruptcy Code, 2016 the National Company Law Tribunal may allow withdrawal of an insolvency application by the person who filed the case but with the approval of ninety percent voting share of the committee of creditors. But such a withdr…
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