Essar Steel’s operational creditors to get an additional 1,000 cr

Majority of lenders to Essar Steel have voted in favour of giving Rs 1,000 crore more to operational creditors as part of the settlement offered by ArcelorMittal, but rejected Standard Chartered’s claims for a higher amount, which may further delay resolution in the 21 month-old insolvency case. Creditors now expect the UK-based lender to challenge the decision of the committee of creditors (CoC) in the Supreme Court In the CoC vote on Saturday, some creditors like ICICI BankNSE -0.01 % and distressed funds from abroad opposed the decision to give more to operational creditors, saying it would create a wrong precedence and could lead to more demands from them. Lenders had to put the proposal to vote after the National Company Law Appellate Tribunal (NCLAT) suggested they consider giving more to operational creditors and Standard Chartered. NCLAT will hear the matter on April 8 and bankers expect that the matter is headed for the Supreme Court whatever the appellate court decides.