Bhubaneswar: The intervention of Odisha Stevedores Ltd.(OSL) in the resolution process of Essar Steel is likely further delay the auction of the steel assets of Ruias.
The Odisha based OSL, one of the operational creditors of Essar Steel with dues of Rs 20.46 crore, has filed a petition in the NCLT Ahmedabad seeking payment of its claims.
OSL, one of the largest stevedoring company, has said in the petition that it’s claim has been neglected in the entire resolution process. The financial creditors like banks are receiving higher financial recovery when compared to the operation creditors, it pointed out.
The resolution professional overseeing the Essar Steel auction has partially admitted of the OSL’s claim. It has pegged the claim at Rs 16 crore as against the stevedores claim of Rs 20.46 crore.
OSL had been doing stevedoring and cargo handling for Essar Steel for a decade. Essar steel has a 4 million tonnes iron pellet plant at Paradip in Odisha. The company was carrying the pellets to its steel facilities in Gujarat by sea route through Paradip port.
OSL is, in fact, one of the 29 operational creditors who have filed petitions in the NCLT claiming their dues. About 27 creditors including major ones such as Apex Commodities, Arfin India, Ideal Movers, Kamaljeet Ahluwalia, and Sakar Industries have made a claim of Rs 360.39 crore. One more application of RK Logistics with total dues of Rs226 crore will be filed separately.
There are about 1169 operational creditors who have made claims totalling over Rs 27,000 crore. Of this claims of over Rs 5000 crore have been admitted by the resolution professional.
The resolution plan of Rs 42,000 crore submitted by Arcelor Mittal, which has been cleared by the CoC, indicates that Rs 214 crores of this will be paid to the operational creditors. , includes payment of Rs 42,000 crore to Essar Steel creditors.
The Odisha-based OSL has also moved an interlocutory petition in the NCLT seeking that the higher proposal of Rs 54,389 crore submitted by Essar Steel’s promoters be accepted or alternatively, Arcelor Mittal be asked to match Essar Steel’s bid.
Essar Steel, which has declared bankrupt, is facing resolution under the ambit of Insolvency and Bankruptcy Code(IBC).