As the debt resolution of Essar Steel drags, Bank of Baroda (BoB), Federal Bank, IDBI Bank and Jammu & Kashmir Bank have sold part or all their loans to the Ruias-promoted steel company,
Mint reported that the National Company Law Appellate Tribunal (NCLAT) on Monday hinted at giving a chance to both Numetal Ltd and ArcelorMittal India Ltd, the resolution applicants who submitted bids for Essar Steel Ltd, to cure ineligibilities after which revised bids may be invited from the companies.
Press Trust of India reported that lenders to Essar Steel on Wednesday urged the NCLAT to complete its insolvency resolution process in “quick” time, saying the debt-ridden company is incurring a daily loss of INR 17 crore.
ArcelorMittal on Tuesday said it was eligible under the Insolvency & Bankruptcy Code to bid for Essar Steel as it was not a promoter of Uttam Galva and KKS Petron, and had already offloaded its shares before submission of the bids.
ArcelorMittal transfers Rs 7,000 cr to State Bank of India to clear dues of loan defaulter Uttam Galva Steel
The world’s largest steelmaker ArcelorMittal has transferred Rs 7,000 crore to State Bank of India (SBI) to clear bank dues of loan defaulter Uttam Galva Steels so that it becomes eligible to bid for acquisition of Essar Steel, a person in know of the development said.
The world’s largest steel maker ArcelorMittal today asserted that its bid for debt-laden Essar SteelNSE 0.00 % is “eligible” and indicated that any pay off towards outstanding dues of Uttam Galva, a firm in which it was a minority shareholder till sometime back, would be a “goodwill gesture”.
Russia’s VTB Capital-backed NuMetal Ltd has moved the National Company Law Appellate Tribunal (NCLAT) against an order allowing rival ArcelorMittal to clear bank dues of associate companies so that it can become eligible for acquisition of Essar Steel.
The first round of resolution plans submitted for Essar Steel Ltd saw ArcelorMittal India offer greater value than competitor Numetal Mauritius, bankers in the know told BloombergQuint on condition of anonymity.
Essar Steel auction: ArcelorMittal faces dues bill of over Rs 7,000 crore to clear eligibility hurdle
ArcelorMittal possibly faces a dues bill of over Rs 7,000 crore, to clear the eligibility hurdle in its bid for Essar Steel. The Ahmedabad bench of National Company Law Tribunal in its order last week observed that promoters of defaulting companies will have to clear outstanding loans to submit resolution plans.
The Ahmedabad Bench of the National Company Lay Tribunal (NCLT) on Thursday said the second round of bidding for bankrupt Essar Steel held on 2 April is invalid and directed the resolution professionals and the committee of creditors (CoC) to reconsider the first round of bids and reconsider offers from ArcelorMittal and Numetal.