The issue assumes significance in the backdrop of Essar Steel facing bankruptcy proceedings. On Monday, the last date for receiving bids for Essar Steel, the resolution professional received two bids – Arcelor-Mittal and Numetal. Following this, banks led by State Bank of India had moved the Delhi High Court seeking an injunction on this transaction.OSPIL owns a 253-km slurry pipeline which moves half of Essar Steel’s iron ore. Essar Steel faces claims of Rs 49,000 crore from financial lenders and Rs 23,000 crore from operational creditors. Nearly onefourth of the claims from operational creditors are from Essar group companies.Essar Steel had in May 2015 monetised its 253-km slurry pipeline.
Source: Economic Times February 14, 2018 02:41 UTC