MUMBAI: Essar Steels insolvency proceedings could turn into a test case for Indias bankruptcy framework with lenders differing on the choice of the so-called interim resolution professional (IRP), the entity that will oversee the exercise, according to two people with knowledge of with the matter. One of these is an unsecured lender and has apparently broken with the other banks and opted to pursue its case separately.
State Bank of India, the lead bank in the consortium of lenders, will file insolvency resolution proceedings against Essar Steel in Ahmedabads National Company Law Tribunal (NCLT) bench. Standard Chartered Bank, the unsecured lender, did so a few days ago.
Essar Steel, which owes banks Rs 44,000 crore, is among the 12 …
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