Essar Steel reports ₹4,229 cr EBITDA during insolvency period- 20.05.2019

Debt-ridden Essar Steel has registered an EBITDA (earnings before interest, tax, depreciation, and amortization) of ₹4,229 crore during its Corporate Insolvency Resolution period (over 600 days).In an affidavit filed before the National Company Law Appellate Tribunal (NCLAT) last week, the resolution professional said the company earned ₹4,000 crore from its operations between August 2017 and February 2019.

In addition, the RP also mentioned an earning of ₹229 crore for March this year. Moreover, this amount “excludes ₹734 crore EBITDA utilized for Finance Costs (Financial Lease, LC/BG Charges to banks and finance charges on payables to suppliers etc) for maintaining the Corporate Debtor (Essar Steel) as a going concern,” the affidavit said.

The affidavit was filed following the directions of the appellate tribunal, which, on 7 May 2019, directed the RP of Essar Steel to submit the details of earnings from operations of the company during the corporate insolvency period.

The affidavit, however, said the “figures from 1 April 2019 till date are not available”.Insolvency resolution proceedings of Essar Steel had commenced on 2 August 2017 after the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was admitted by the NCLT’s Ahmedabad Bench.

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Source: Livemint