Essar Steel creditors' panel meeting with IRP deferred
PTI|
Updated: Mar 05, 2018, 10.18 PM IST
NEW DELHI: The meeting between the debt-laden Essar Steel's committee of creditors (CoC) and the Insolvency Resolution Professional (IRP) has been deferred to Wednesday, sources said.
The IRP and the CoC could not decide on the eligibility of the bidders who have submitted resolution plans for Essar Steel, a person in the know of the matter said.
"The meeting has been deferred for Wednesday where future course will be decided," another source said.
Essar Steel was among the initial 12 companies identified by the Reserve Bank of India (RBI) for insolvency proceedings. It has a loan exposure of Rs 37,284 crore.
On February 12, Luxembourg-based ArcelorMittal and a consortium led by Russia's VTB Group submitted bids to takeover Essar Steel under an insolvency process.
While ArcerlorMittal's partner is Nippon Steel & Sumitomo Metal Corp for the takeover, VTB used a Mauritius-based investment vehicle Numetal, where Rewant Ruia - Essar Group promoter Ravi Ruia's son - held 25 per cent stake.
With an aim to debar promoters of defaulting firms, the government last year amended the Insolvency Bankruptcy Code including Section 29 A which prohibits promoters or sister concerns of companies with NPAs from participating in auctions.
The IRP and the CoC could not decide on the eligibility of the bidders who have submitted resolution plans for Essar Steel, a person in the know of the matter said.
"The meeting has been deferred for Wednesday where future course will be decided," another source said.
Essar Steel was among the initial 12 companies identified by the Reserve Bank of India (RBI) for insolvency proceedings. It has a loan exposure of Rs 37,284 crore.
On February 12, Luxembourg-based ArcelorMittal and a consortium led by Russia's VTB Group submitted bids to takeover Essar Steel under an insolvency process.
While ArcerlorMittal's partner is Nippon Steel & Sumitomo Metal Corp for the takeover, VTB used a Mauritius-based investment vehicle Numetal, where Rewant Ruia - Essar Group promoter Ravi Ruia's son - held 25 per cent stake.
With an aim to debar promoters of defaulting firms, the government last year amended the Insolvency Bankruptcy Code including Section 29 A which prohibits promoters or sister concerns of companies with NPAs from participating in auctions.
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