Odisha Slurry Pipeline Infrastructure: ArcelorMittal Resolution Plan Approved

The resolution plan submitted by ArcelorMittal for Odisha Slurry Pipeline Infrastructure Ltd has been approved by the National Company Law Tribunal, Cuttack (NCLT) by its order passed on March 9, 2020. The corporate insolvency resolution process had been initiated last year pursuant to the petition filed by IDBI Bank Limited. The Committee of Creditors (CoC) considered two resolution plans submitted to it- one, filed by ArcelorMittal India Private Limited, and the second, filed by Thriveni Earthmovers Private. The resolution plan submitted by ArcelorMittal was approved by 100% votes in the CoC, and the NCLT approved the same upon an application made by the resolution professional, viz. Ashish Chhawchharia.  

The NCLT also rejected two applications filed by SREI Infrastructure Finance, a financial creditor of the corporate debtor, whereby it had sought, inter-alia, the application filed by the resolution professional, for approval of ArcelorMittal's resolution plan, to be rejected and for the subject petition to be kept pending till the disposal of SREI’s appeal pending before the National Company Law Appellate Tribunal. It is pertinent to mention that SREI had filed an appeal in the NCLAT against the order passed by the NCLT on November 29, 2019, whereby it had found SREI to be a related party and ruled that it could not participate in the proceedings of the CoC.

The NCLT also rejected SREI’s contention that ArcelorMittal's resolution plan, approved by the COC, was unfair as it proposed to pay 100% of the principal amounts owed to the secured and unsecured creditors.