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A two-member bench of the NCLT Cuttack gave a go-ahead to the resolution plan of ArcelorMittal India, which had been approved by the Committee of Creditors (CoC) of OSPIL.
The tribunal observed that the plan provides repayment of the principal dues to all financial creditors of OSPIL, which is indeed “fair and equitable” and has taken care of the interests of all stakeholders.
“The Resolution Plan submitted by ArcelorMittal India, the Resolution Applicant, approved by 100 per cent of voting in the 8th Committee of Creditor’s Meeting held on December 6, 2019, is approved as per Section 31 (l) of the Insolvency and Bankruptcy Code,” said NCLT.
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OSPIL owns and operates a 253-km pipeline that connects iron ore mines in Dabuna, Odisha, to a pelletisation plant in Paradip. It connects ArcelorMittal Nippon Steel India (formerly Essar Steel) iron ore beneficiation plant in Dabuna to its pellet plant in Paradip in the state of Odisha.
Commenting on the development, an ArcelorMittal spokesperson in a statement said: “We welcome today’s judgment by NCLT Cuttack approving our resolution plan for the Odisha Slurry Pipeline Infrastructure Ltd (OSPIL), having previously secured unanimous approval from the Committee of Creditors for OSPIL.
“Following today’s approval by NCLT, we now look forward to completing the formalities that will see ownership of the asset transferred to AM/NS India,” it added.
The Resolution Professional of OSPIL had shortlisted two resolution plans by – ArcelorMittal India and Thriveni Earthmovers. However, the Committee of Creditors opted in favour of ArcelorMittal India with 100 per cent voting.
Thriveni Earthmovers had challenged its rejection before the NCLT but it withdrew its plea on February 24, 2020.
The NCLT has on May 14, 2019, had directed to initiate corporate insolvency resolution process against OSPIL.