ArcelorMittal Steel’s Essar Acquisition: A Long Legal Battle with Ramifications

IF 0.1 Q4 MANAGEMENT

Asian Journal of Management Cases Pub Date : 2024-03-08 DOI:10.1177/09728201241232207

Priyanka Priyadarshani, Kanagaraj Ayyalusamy

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.

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安赛乐米塔尔钢铁公司收购 Essar：影响深远的漫长法律战

Essar Steel India Limited（ESIL）参加了 2016 年印度新《破产和破产法》（IBC）规定的拍卖，以收回欠金融贷款人和经营债权人的未偿债务，总额达 5454.70 亿英镑。收购程序于 2017 年 8 月启动，2019 年 12 月结束，安赛乐米塔尔支付了 420 亿英镑。这标志着长达两年的法律纠纷得以解决。Essar 案是 2016 年《国际商业公司法》实施过程中的一个重要里程碑，确立了一些法律先例，如国家公司法法庭对债权人委员会所做商业决定的不干涉原则。国家公司法上诉法庭和第 29A 条的引入是额外的发展。本案例旨在评估安赛乐米塔尔收购 ESIL 背后的动机，评价安赛乐米塔尔的做法是否恰当，并研究长达两年的旷日持久的法律战对交易的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Journal of Management Cases MANAGEMENT-

CiteScore

0.70

自引率

0.00%

发文量

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.