Billionaire LN Mittal-led ArcelorMittal is likely to repay the dues of Uttam Galva and KSS Petron only if its bid for Essar Steel is recognised as the winning bid, bankers with direct knowledge of the development said.
On Tuesday, ArcelorMittal, one of the two key contenders for the bankrupt Essar Steel, transferred Rs 7,000 crore into a State Bank of India (SBI) escrow account for the payment of dues of the two firms in an attempt to make its bid for Essar Steel eligible.
“The money from the escrow account will be released only if they are recognised as the H1 bidder,” a senior banker said on condition of anonymity. “The move is positive, and we will respond accordingly. However, a lot will depend on what the National Company Law Appellate Tribunal (NCLAT) says on Thursday.” The NCLAT will hear all the petitions filed by Numetal and ArcelorMittal on Thursday, and its decision is keenly awaited by Essar Steel’s committee of creditors (CoC). Numetal had first approached the NCLAT challenging the NCLT order that Essar Steel’s RP Satish Kumar Gupta and the CoC will have to reconsider the first round of bids placed by the two bidders. ArcelorMittal moved the NCLAT challenging the disqualification of its first bid. Later, Numetal challenged the CoC’s decision that both the bidders will have to repay existing debt to become eligible. It is also understood to have asked the NCLAT to consider the second round of bids. FE