SC clears path for ArcelorMittal's takeover of Essar Steel. Shares of PSU Banks rise on the back of the news.
Go Ahead: The Supreme Court of India has cleared way for ArcelorMittal's takeover of debt-ridden Essar Steel.
The apex court has asked ArcelorMittal to pay creditors for Essar Steel India, in the process scrapping a bankruptcy appellate tribunal’s order that had given secured and unsecured lenders equal right over the sale proceeds.
Previously: ArcelorMittal, and its partner Nippon Steel had offered to pay INR42,000cr in cash to creditors and pump another INR8,000cr in Essar Steel last year. While that offer was approved by a bankruptcy tribunal in March under the insolvency process, the payment was kept on hold by the SC after a dispute arose between lenders on the distribution of funds. Livemint
Shares of PSU banks, including SBI, Canara Bank, PNB, IDBI rallied 1-9% following the verdict which was ruled in favour of the Committee of Creditors (COC), which consists of banks. Moneycontrol
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