ArcelorMittal, Numetal get SC’s nod to bid for Essar Steel
ArcelorMittal and Numetal have received an approval from Supreme Court to bid for Essar Steel, subject to clearance of outstanding due within two-weeks, media reports said.
According to media reports, SC’s bench comprising Justices R F Nariman and Indu Malhotra has rejected the claim of each party that the other was ineligible. The bench insisted that both were ineligible under the act to bid and has asked both the parties to pay off their corporate dues before biding. ArcelorMittal has debt of Rs7,000cr related to Uttam Galva and KSS Petron.
The bench has also asked the Committee of Creditors to come out with a decision within eight weeks on the bids submitted by Numetal and ArcelorMittal for Essar Steel, according to media reports.
Earlier, the apex court order had asked 66% majority of Committee of Creditors (CoC) to finalize the bid and if the majority doesn’t approve any bid, then Essar Steel goes into liquidation.
Moreover, SC has diluted the role of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) and directed them to step in only after resolution plans were approved by a majority of the Committee of Creditors (CoC).
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