MCA may order management change in Essar Steel
After more than a year, the long-drawn resolution process of Essar Steel seems to be finally moving towards closure with the Corporate Affairs Ministry ready to order a change in the management of the insolvent steel maker.
 
The move comes even as a fresh petition was filed before the National Company Law Appellate Tribunal (NCLAT) by Essar Steel MD Prashant Ruia, Essar Group executives, as well as the Standard Chartered Bank, seeking to set aside the ArcelorMittal's winning bid approved by the Ahmedabad bench of the NCLT.
 
The resolution plan for Essar Steel, which has been facing bankruptcy proceedings since August 2017, was approved by the National Company Law Tribunal (NCLT) last Friday. It accepted ArcelorMittal's Rs 42,000 crore bid for the debt-laden steel maker.
 
Official sources said the MCA is waiting for the written order from the NCLT after which it would approve and order a management change in Essar Steel. "This may take a day or two," said the source.
 
The legal contentions against the takeover can continue later, said the official.
 
The NCLAT is set to hear the petitions against ArcelorMittal's winning bid on Thursday. The appellate court's order is awaited.
 
The NCLT's decision paves the way for world's largest steel maker ArcelorMittal's entry into India. The steel company run by steel baron Lakshmi Niwas Mittal has been trying enter the Indian market for more than a decade. 
 
Indian-born Mittal's steel company is the world's largest by volume but, ironically, doesn't have a steel plant to its name in his homeland.
 
The NCLT bench approved ArcelorMittal's resolution plan, which was voted as the winning bid in October 2018 by the Committee of Creditors (CoC) and which included an upfront payment of Rs 42,000 crore and a post-deal infusion of Rs 8,000 crore in Essar Steel.
 
The NCLAT had last month directed the NCLT Ahmedabad bench to take a final decision on ArcelorMittal's bid for the acquisition of Essar Steel by March 8, failing which it would pass an order itself.
 
While the NCLT verdict came as a major setback to the Ruias, who wanted to retain control of the company and had offered Rs 54,389 crore after the CoC approved ArcelorMittal's bid, the promoters of Essar Steel believe they still have a chance.
 
The Ruias are not yet ready to surrender the 10-million tonne steel mill, which owes Rs 49,000 crore to financial creditors. They have filed an appeal in the NCLAT and if needed, may even approach the Supreme Court. Essar's earlier appeal in these courts had been dismissed.
 
ArcelorMittal, in a joint venture with Japan's Nippon Steel & Sumitomo Metal Corp., has offered an upfront cash settlement of Rs 42,000 crore to lenders and a Rs8,000 crore capital infusion. 
 
The world's largest steel maker is also planning a Rs 18,697 crore capital expenditure programme for the asset till 2024, according to its 2018 annual report.
 
In its order, the NCLT has also ordered ArcelorMittal to offer 15 per cent of the upfront cash settlement of Rs42,000 crore, or Rs6,300 crore, to operational creditors. 
 
The original resolution plan only offered Rs196 crore to operational creditors against claims of Rs 4,976 crore. The NCLT order means financial creditors -- "the banks" -- will have to take a deeper haircut on the asset.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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50 countries ground, ban Boeing Max 8 planes
A total of 50 countries, including the US, has either grounded or banned the Boeing 737 Max 8 planes following the crash of an Ethiopian Airlines plane of the same model that killed all 157 people on board earlier this week.
 
US President Donald Trump spoke to the media before the Federal Aviation Administration (FAA) on Wednesday grounded all Boeing 737 Max jets in the country, CNN reported.
 
"I didn't want to take any chances. We didn't have to make this decision today," Trump said. 
 
"We could have delayed it. We maybe didn't have to make it at all. But I felt it was important both psychologically and in a lot of other ways."
 
Trump said his decision was fact-based, even as he admitted it was made partly with regard for the mental well-being of American travellers. 
 
"The safety of the American people, of all people, is our paramount concern," he added.
 
Of the more than 370 Boeing 737 Max jets in global fleets, 74 are flown by US airlines, according to the FAA. Those include United Airlines, Southwest Airlines and American Airlines. 
 
Mexico also took action against Boeing 737 Max 8 planes on Wednesday evening, just hours after the US' decision to suspend the planes' operation inside the country.
 
The General Directorate of Civil Aviation said they were banned until further notice to "guarantee the safety and confidence" of aircraft flying in Mexican airspace.
 
On Thursday, South Korea and Thailand joined the list of countries that have suspended operations of the planes
 
South Korea's largest airline, Korean Air, announced it would be putting on hold plans to introduce Boeing 737 Max 8s into their fleet.
 
Thailand's Civil Aviation Authority announced all operations of Max 8 and Max 9 planes would be temporarily suspended until midnight on March 20.
 
Some of the other countries that have moved to ground the Boeing 737 MAX aircraft include India, China, the European Union, the UK, Canada and Australia.
 
Meanwhile, the black boxes from the Ethiopian Airlines flight 302 will arrive in Paris for analysis on Thursday morning, a vital clue into what caused the Nairobi-bound aircraft to crash six minutes after take-off from Addis Ababa. 
 
The French Bureau of Enquiry and Analysis for Civil Aviation Safety (BEA) will conduct the investigation into the recorders but a spokesman for the bureau said they wouldn't be announcing the results.
 
"Only the Ethiopian authorities will report on the progress of the investigation. There will be no press conference," a BEA spokesman told CNN.
 
Sunday's crashcame less than five months after a Lion Air Boeing 737 Max 8 - the same type of plane - plunged into the Java Sea minutes into the flight from Jakarta, Indonesia, killing all 189 people on board. 
 
Both planes were new, delivered from Boeing just months before their doomed flights.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

Kushal Kumar

2 months ago

During months of February - March 2019 , aviation sector , both military and civil , have witnessed mishaps in the air. Military jets have met with accidents and so is the case with drones. Aviation industry through Boeing 737 aircrafts has been in the news for worrisome concerns. Two major mishaps in the air have killed some hundreds. The latest such mishap in the air involving Boeing 737 plane happened on 10 March 2019 when an Ethiopian Airlines flight crashed killing all 157 persons on board. These circumstances followed a rethinking in the aviation sector. Several countries across the world are reported to have grounded more Boeings. In this context , it may be apt to refer readers to this Vedic astrology writer’s predictive alerts for more care and appropriate strategy brought to public domain quite often since last year October 2018 , through social media plus submission of comments to a number of newspapers across the world. In order that readers refresh their memory , the same is being reproduced here :-
“The following alert for more care and appropriate strategy in relation to aviation industry was made by this Vedic astrology writer over three months past in October 2018 :-
‘Astrologically speaking , aviation industry , world-wide and in India as well , could have focus for doing much to correct the systems or to innovate with strategies . Such aspects as skilled work-force or improved technology or know-how could also be in focus. Major air accidents at vulnerable locations due to some mechanical defect or oversight - negligence cannot be ruled out. This scenario can come up during coming last two months of present year 2018 and during new year 2019 , more so during February - March. So need is to be alert for more care and appropriate strategy’.
Note : Dates 13 to 15 February , 21 to 23 February and 2 to 4 March in 2019 , 11-12 March or a day prior and after to these dates looks to be calling particular care”.
Similar alerts were indicated in this writer’s article “ World Predictions 2019” underlining need of more care and appropriate strategy in relation to flying in the air were brought to the public domain in November -December 2018. Some of the countries like China , India , France , UK , US which have reportedly grounded the Boeing 737 were indicated in the aforesaid article for more such care and appropriate strategy. The events which have unfolded on the ground during the period covered by the alert suggest that the alert was precise and meaningful.



India bans B737s, US won't ground them
India announced that all Boeing 737 aircraft will stop operating in the country from 4 p.m. on Wednesday but the US aviation regulator questioned the global grounding of the fleet after an Ethiopian Airlines crash.
 
"No B737 Max aircraft will be allowed to enter or transit the Indian airspace effective 1600 hours," the Ministry of Civil Aviation tweeted.
 
This came as a clarification and in continuation to its late Tuesday decision when the Ministry had tweeted: "DGCA (Directorate General of Civil Aviation) has taken the decision to ground the Boeing 737-MAX planes immediately." 
 
The Ministry added on Wednesday: "B737Max operations will stop from or to all Indian airports. Additionally, no B737 Max aircraft will be allowed to enter or transit the Indian airspace effective 1600 hours Indian time or 1030 UTC."
 
The directive came close on the heels of a global grounding of the Boeing fleet following the crash of an Ethiopian Airlines' Boeing 737-800 MAX flight on Sunday killing all 157 people on board.
 
India joined the UK, Singapore, Indonesia, Ethiopia, Italy, Australia and the EU nations in the grounding.
 
On Tuesday, the US aviation regulator Federal Aviation Administration (FAA) said that no systematic performance issues have been found with the Boeing 737-Max aircraft to justify the global grounding.
 
"The FAA continues to review extensively all available data and aggregate safety performance from operators and pilots of the Boeing 737 Max. Thus far, our review shows no systematic performance issues and provides no basis to order grounding the aircraft," the regulator said.
 
"Nor have other civil aviation authorities provided data to us that would warrant action. In the course of our urgent review of data on the Ethiopian Airlines Flight 302 crash, if any issues affecting the continued airworthiness of the aircraft are identified, the FAA will take immediate and appropriate action."
 
In India, SpiceJet and Jet Airways operate 17 Boeing 737-800 MAX aircraft -- Spice (12) and Jet (5).
 
On its part, SpiceJet said: "Consequent to the regulatory directive on the Boeing 737 MAX, SpiceJet has already initiated grounding of its MAX fleet. 
 
"In order to cause least inconvenience to its passengers and also bring these aircraft to its maintenance base, we expect to complete this exercise on or before 4 p.m. today."
 
SpiceJet has announced cancellation of 14 flights. 
 
"Of the 76 planes in our fleet, 64 aircraft are in operation and we are confident of minimizing the inconvenience to our passengers and attain normalcy in our operations," the airline said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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