In a major development, the promoters and the board of the company have sought withdrawal from the insolvency resolution process offering to pay dues of all the creditors. Board and the shareholders of Essar Steel have decided to pay Rs 54,389 crore to creditors of all classes under Section 12A of the IBC to withdraw the company from the corporate insolvency resolution process. This offer includes an upfron cash payment of Rs 47,507 crore to all the creditors and Rs 45,559 crore to senior secured creditors. The committee of Creditors will have to decide whether to quash the Corporate Insolvency Resolution Process which is in the final stages.
Essar Steel seeks withdrawal from IBC process, offers to pay all creditors
