Essar Steel insolvency case: Numetal, Arcelor continue to scrap

Mukul Rohatgi, counsel for Numetal, told the National Company Law Appellate Tribunal (NCLAT) that Numetal has severed its association with Rewant Ruia, son of Essar Steel promoter Ravi Ruia, to become eligible to buy the steel company.

By: ENS Economic Bureau | Mumbai/ New Delhi | Published: May 18, 2018 2:17:12 am
Essar Steel insolvency case: Numetal, Arcelor continue to scrap The NCLAT will hear the case again on May 22. Bankers are likely to take a call on the matter once the NCLAT passes its order.

The fight for Essar Steel continued in the courts on Thursday with the two contenders, ArcelorMittal and Numetal, arguing over which bids should be valid — those in the first round or those in the second.

Russia’s VTB Bank-led Numetal argued the resolution plans submitted in the second round of bidding should be considered and the highest bid be selected. ArcelorMittal, on the other hand, opposed the petition to allow the second round of bids to be opened, and said only the first round of bids should be considered. ArcelorMittal is understood to have made an upfront offer of Rs 30,500 crore and pledged another Rs 8,000 crore in the form of capital infusion into Essar Steel.

Mukul Rohatgi, counsel for Numetal, told the National Company Law Appellate Tribunal (NCLAT) that Numetal has severed its association with Rewant Ruia, son of Essar Steel promoter Ravi Ruia, to become eligible to buy the steel company. Moreover, he said, it has also enhanced the bid amount to Rs 37,000 crore.

Rohatgi claimed that assessing the bids made in the second round would help realise the maximum value for the asset. Essar Steel owes financial creditors close to Rs 50,000 crore.

The NCLAT will hear the case again on May 22. Bankers are likely to take a call on the matter once the NCLAT passes its order.

“The move by ArcelorMittal is positive, but there are other factors to be considered. We will take a decision once the NCLAT passes its order,” a banker, who is a member of the committee of creditors (CoC), said on conditions of anonymity. FE

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