{"title":"ArcelorMittal Steel’s Essar Acquisition: A Long Legal Battle with Ramifications","authors":"Priyanka Priyadarshani, Kanagaraj Ayyalusamy","doi":"10.1177/09728201241232207","DOIUrl":null,"url":null,"abstract":"Essar Steel India Limited (ESIL) participated in an auction under the new Indian Insolvency and Bankruptcy Code (IBC) of 2016 to recover outstanding dues totalling ₹545,470 million owed to financial lenders and operational creditors. The acquisition process, initiated in August 2017, concluded in December 2019, with ArcelorMittal paying ₹420,000 million. This marked the resolution of a prolonged two-year legal dispute. Essar’s case served as a significant milestone in the implementation of the IBC 2016, establishing legal precedents such as the non-interference principle regarding commercial decisions made by the Committee of Creditors by the National Company Law Tribunal. The National Company Law Appellate Tribunal and the introduction of Section 29A were additional developments. The case aims to assess the motivations behind ArcelorMittal’s acquisition of ESIL, evaluate the appropriateness of ArcelorMittal’s approach and examine the impact of the protracted legal battle spanning two years on the deal.","PeriodicalId":41247,"journal":{"name":"Asian Journal of Management Cases","volume":"9 1","pages":""},"PeriodicalIF":0.1000,"publicationDate":"2024-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian Journal of Management Cases","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/09728201241232207","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Essar Steel India Limited (ESIL) participated in an auction under the new Indian Insolvency and Bankruptcy Code (IBC) of 2016 to recover outstanding dues totalling ₹545,470 million owed to financial lenders and operational creditors. The acquisition process, initiated in August 2017, concluded in December 2019, with ArcelorMittal paying ₹420,000 million. This marked the resolution of a prolonged two-year legal dispute. Essar’s case served as a significant milestone in the implementation of the IBC 2016, establishing legal precedents such as the non-interference principle regarding commercial decisions made by the Committee of Creditors by the National Company Law Tribunal. The National Company Law Appellate Tribunal and the introduction of Section 29A were additional developments. The case aims to assess the motivations behind ArcelorMittal’s acquisition of ESIL, evaluate the appropriateness of ArcelorMittal’s approach and examine the impact of the protracted legal battle spanning two years on the deal.
期刊介绍：
Asian Journal of Management Cases is a peer-reviewed journal that aims at providing high-quality teaching material to academics, consultants, and management developers, through cases on management practices in the socioeconomic context of developing Asian countries. The journal covers all administrative disciplines including accounting and finance, business ethics, production and operations management, entrepreneurship, human resource management, management information systems, marketing, organizational behaviour, strategic management, and managerial economics. Each issue of Asian Journal of Management Cases comprises four to five original case studies. Teaching cases should be accompanied with a Teaching Note (TN). Even though the TN will not be published, it is necessary for the review process and can be obtained by contacting the authors directly. Please refer to the online submission guidelines for details on writing a teaching note. AJMC does not publish pure research or applied research based on field studies (not case studies). The journal is published in March and September every year with thematically focused issues occasionally.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
