NCLT orders IBC of Essar Steel

Ahmedabad, Aug 2: A Company has received a shock. National Company Law Tribunal (NCLT) of Ahmedabad branch today has admitted the insolvency petition against the Essar Steel.The petition was filed by lenders State Bank of India (SBI) and Standard Chartered Bank (SCB) in the court. Earlier NCLT has rejected the company's plea.

The court has ordered to initiate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) 2016. The tribunal bench has appointed SBI-nominated Satish Kumar Gupta of Alvarez and Marsal India as the interim resolution professional (IRP) for the case. Currently, the companies owe a due of Rs 34,000 crore.

Sources say that Essar Steel is one among the 12 corporate debtor companies that the Reserve Bank of India (RBI) has identified as large defaulters.