Change of Guard Is Underway at Essar Steel
A change of guard is underway at EssarSteelNSE 0.00 %. ArcelorMittal — whose Rs 42,000-crore resolution proposal for the Gujarat-based flat steel manufacturer was approved by the insolvency court last month — has nominated its representatives to the monitoring committee even as a couple of senior executives close to the previous management exited the firm, said a person close to the company.
The monitoring committee was put in place on National Company Law Appellate Tribunal’s directive. It consists of three executives from ArcelorMittal, three representatives from the banks, namely State Bank of India (SBI), ICICI, IDBI and Edelweiss, and Satish Kumar Gupta, the resolution professional who is also the chairman of the committee. ArcelorMittal’s representatives are Sanjay Sharma, CEO for Arcelor-Mittal China & India, Kalyan Ghosh, CFO at ArcelorMittal India, and Vijay Krishna Goyal, vice president at ArcelorMittal, said the person cited earlier.
At the same time, Suresh Jain, CFO of Essar Steel, gave his resignation last week. Under the new reporting structure, Jain would have had to report to Alvarez &Marsal that is acting as a mediator between the current management and the monitoring committee, and that was not acceptable to him, the source said.