NCLT approves ArcelorMittal’s Rs 2,359 cr bid for Odisha Slurry Pipeline

PTI, Mar 4, 2020, 10:34 AM IST

New Delhi: The National Company Law Tribunal (NCLT) has approved a Rs 2,359-crore bid of ArcelorMittal India for debt-ridden Odisha Slurry Pipeline Infrastructure Ltd (OSPIL).

A two-member bench of the NCLT Cuttack gave a go-ahead to the resolution plan of ArcelorMittal India, which had been approved by the Committee of Creditors (CoC) of OSPIL.

The tribunal observed that the plan provides repayment of the principal dues to all financial creditors of OSPIL, which is indeed “fair and equitable” and has taken care of the interests of all stakeholders.

“The Resolution Plan submitted by ArcelorMittal India, the Resolution Applicant, approved by 100 per cent of voting in the 8th Committee of Creditor’s Meeting held on December 6, 2019, is approved as per Section 31 (l) of the Insolvency and Bankruptcy Code,” said NCLT.

The two-member bench, which comprised Satya Ranjan Prasad and Sucharitha R also said that the order would be “binding on employees, members, creditors” and other stakeholders.

OSPIL owns and operates a 253-km pipeline that connects iron ore mines in Dabuna, Odisha, to a pelletisation plant in Paradip. It connects ArcelorMittal Nippon Steel India (formerly Essar Steel) iron ore beneficiation plant in Dabuna to its pellet plant in Paradip in the state of Odisha.

Commenting on the development, an ArcelorMittal spokesperson in a statement said: “We welcome today’s judgment by NCLT Cuttack approving our resolution plan for the Odisha Slurry Pipeline Infrastructure Ltd (OSPIL), having previously secured unanimous approval from the Committee of Creditors for OSPIL.

“Following today’s approval by NCLT, we now look forward to completing the formalities that will see ownership of the asset transferred to AM/NS India,” it added.

The Resolution Professional of OSPIL had shortlisted two resolution plans by – ArcelorMittal India and Thriveni Earthmovers. However, the Committee of Creditors opted in favour of ArcelorMittal India with 100 per cent voting.

Thriveni Earthmovers had challenged its rejection before the NCLT but it withdrew its plea on February 24, 2020.

The NCLT has on May 14, 2019, had directed to initiate corporate insolvency resolution process against OSPIL.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Vijaypura: Newborn baby found abandoned near canal

Pregnant forest guard beaten up by couple in Maha’s Satara, duo held; minister promises strict action

Mandya: Out on bail Hindu seer Rishikumar Swami demands closure of mosque; sparks row

Both lives and livelihood will be considered as K’taka govt to decide on COVID curbs tomorrow: Min R Ashoka

Delhi riots: Convict Dinesh Yadav gets 5 years in jail for setting house on fire

In Gorakhpur, Bhim army chief Chandrashekhar Azad to take on Yogi Adityanath

Europe considers new COVID-19 strategy: accepting the virus

Related Articles More

FinMin to release Rs 47,541 cr advance installment of tax devolution to states

Agricultural exports likely to create history crossing USD 50 billion, says Ministry of Commerce

Artha to represent Talend in India as Master VAR

All 3 independent directors of PTC India Financial Services resign

Digital payments record 40 pc annual growth at Sep-end 2021: RBI data


NEWS BULLETIN 20-01-2022


Robbery at Chincholi : Video viral

Man Desighned Tallest Ridable Bicycle

Groundnut Cultivation Practices / Peanut farming in India

Latest Additions

Karnataka govt launches AVGC Center of Excellence in Bengaluru

Vijaypura: Newborn baby found abandoned near canal

Stampede at religious ceremony in Liberia kills 29 people

Pregnant forest guard beaten up by couple in Maha’s Satara, duo held; minister promises strict action

Mandya: Out on bail Hindu seer Rishikumar Swami demands closure of mosque; sparks row

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.