India Ltd will make Arcelor the fourth-biggest producer in a nation where the government is investing trillions of rupees in infrastructure. The verdict is likely to be the final approval in a more than yearlong battle by Arcelor to take over Essar. While
can seek a review of decision by the same bench of judges, the success of review petitions is rare.
The world’s largest steelmaker, ArcelorMittal
and its partner Nippon Steel Corp had offered to pay Rs 420 billion ($5.8 billion) in cash to creditors and pump another Rs 80 billion in the mill 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 Supreme Court
after a dispute arose between lenders on the distribution of funds.
The ruling will set a precedent for other insolvencies that are awaiting resolution over the distribution of funds between different class of creditors.
India’s rupee, and creditors to Essar extended gains after the ruling. The rupee rose 0.3% at 11:06 am, while State Bank of India added 4.2% and Canara Bank surged as much as 7%.
The Supreme Court
on Friday also said the timeline for insolvencies can be extended in exceptional cases.