Essar Steel insolvency: Lenders ask NCLT to reject promoters’ bid


Essar Steel insolvency: Lenders ask NCLT to reject promoters’ bid

The lenders of bankrupt Essar Steel on Wednesday told the Ahmedabad bench of the National Company Law Tribunal (NCLT) that the last-minute offer by the company’s promoters to pay Rs 54,389 crore should be dismissed as it is “not maintainable”.

To support the contention, the Supreme Court’s October order in the matter was read out, which had stated that both ArcelorMittal and Numetal, who were in the race to acquire Essar Steel, would have to clear any outstanding within two weeks to become eligible to bid for the company. It was also pointed out that the proposal from Essar Steel promoters came only after the lenders picked up ArcelorMittal as the preferred bidder for the company on October 25.

The counsel for the committee of creditors (CoC) for Essar Steel, Ravi Kadam, also urged the tribunal to conduct day-to-day hearing on the matter. However, the tribunal deferred the matter for hearing to December 10 saying that the bench was not in full strength. Read More

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