Essar Steel IRP checking eligibility of ArcelorMittal and Numetal bids - Report
Business Standard reported that the resolution plans of ArcelorMittal and Numetal were sent to Grant Thornton and Cyril Amarchand Mangaldas on Wednesday by Essar Steel’s resolution professional, Alvarez & Marsal, as questions were being raised over their eligibility. Once the bids get a green signal from the firms, they will be opened by the committee of creditors (CoC), who will take a call to accept or reject the offers by next week. The winning offer will then be sent to the National Company Law Tribunal (NCLT) for a final resolution.
Bankers say the resolution professional and the NCLT will have to take a call on the eligibility of ArcelorMittal and Numetal, as it involves interpretation of the Insolvency and Bankruptcy Code and relevant rules.
In the case of Ruias, Essar Steel has defaulted to bank loans worth INR 44 billion. Ruias own 25 per cent stake in Numetal through a Singapore-based trust, while VTB Bank of Russia owns a majority stake in Numetal with two other partners.
On the other hand, according to a filing with BSE, ArcelorMittal held 29.05 per cent stake in Uttam Galva Steels as a foreign promoter at end of December 2017. Also Mr Mittal owned 33 per cent stake in KazStroyServices (KSS) of Kazakhstan, an oil infrastructure provider company, in his personal capacity. KSS, in turn, holds 100 per cent stake in KSS Petron, which turned into a NPA in 2015. Mittal undertook a second transaction and sold his stake in KSS last week overseas so that it can bid for Essar Steel.
Source : Business Standard