SC Clears Way for ArcelorMittal's Takeover of Essar Steel, Shares of PSU Banks Rise on the Back of the News

SC clears path for ArcelorMittal's takeover of Essar Steel. Shares of PSU Banks rise on the back of the news. 

 

ESSAR STEEL

SC clears way for ArcelorMittal's takeover of Essar Steel.

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 rise on the back of the news.

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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