MUMBAI: The State Bank-led consortium of lenders to Essar Steel these days rejected the bids by way of both Numetal in addition to ArcelorMittal after discovering them to be ineligible under the amended Insolvency & Bankruptcy Code that debars similar parties from bidding.
The choice was taken at a meeting of the Essar Steel's committee of collectors (CoC) here on Wednesday.
"The (Numetal and ArcelorMittal) were found to be ineligible under the Section 29 A of the IBC. They did not fall under the satisfactory criterion that the promoters' link should not be there or connected persons should not be there," a banking source advised PTI.
While ArcelorMittal India has been found ineligible for its joint venture with Uttam Galva, which is at the NCLT anticipating resolution, Numetal's bid was finished in by way of the truth that one of the most promoters of the particular goal vehicle is Rewant Ruia, the son of Essar Group promoter Ravi Ruia, who is without doubt one of the unique promoters of Essar Steel.
Lenders have additionally set an April 2 deadline for the second spherical of bidding Essar Steel that owes over Rs 45,000 crore to over 30 bankers.
Bankers stated if both the companies delink their connection from the promoters or standise the loans they can bid once more.
It can also be noted that the recent amendments to the IBC had added a new clause to Section 29 (A) which debars similar parties from bidding for NCLT assets.
The choice was taken at a meeting of the Essar Steel's committee of collectors (CoC) here on Wednesday.
"The (Numetal and ArcelorMittal) were found to be ineligible under the Section 29 A of the IBC. They did not fall under the satisfactory criterion that the promoters' link should not be there or connected persons should not be there," a banking source advised PTI.
While ArcelorMittal India has been found ineligible for its joint venture with Uttam Galva, which is at the NCLT anticipating resolution, Numetal's bid was finished in by way of the truth that one of the most promoters of the particular goal vehicle is Rewant Ruia, the son of Essar Group promoter Ravi Ruia, who is without doubt one of the unique promoters of Essar Steel.
Lenders have additionally set an April 2 deadline for the second spherical of bidding Essar Steel that owes over Rs 45,000 crore to over 30 bankers.
Bankers stated if both the companies delink their connection from the promoters or standise the loans they can bid once more.
It can also be noted that the recent amendments to the IBC had added a new clause to Section 29 (A) which debars similar parties from bidding for NCLT assets.
Lenders reject bids by Numetal, ArcelorMittal for Essar Steel
![Lenders reject bids by Numetal, ArcelorMittal for Essar Steel]()
Reviewed by Kailash
on
March 22, 2018
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