Deutsche, SBI oppose more cash to operational creditors of Essar Steel

The dispute among Essar Steel creditors on how to distribute cash from ArcelorMittal’s resolution plan has taken a new turn with Deutsche Bank opposing any move to deviate from what the lenders have approved and giving more cash to operational lenders.
 
Last week in a meeting of the committee of creditors, lenders agreed to set aside Rs 1,000 crore more for operational creditors. This additional cash was to gain approval from operational creditors, who are opposing the distribution of Rs 42,000 crore (ArcelorMittal’s resolution plan) only among secured creditors while setting aside only Rs 200 crore for them. The