New Delhi: Pending decision on eligibility of bidders for debt-laden Essar Steel, lenders and insolvency resolution professional (IRP) are likely to meet on Wednesday and take up the option of rebidding, people in the know said.
The committee of creditors (CoC) and the IRP may convene a meeting on Wednesday in which a decision on the eligibility of ArcelorMittal’s and Numetal’s bid for bankrupt Essar Steel is likely, a person in familiar with the matter said.
Bids for Essar Steel were submitted on 12 February, and its been over a month with no decision on eligibility of the bidders. “In the Wednesday’s meeting, an option of rebidding can also be discussed,” the person said.
While Luxembourg-based ArcelorMittal’s partner is Nippon Steel & Sumitomo Metal Corp. for the takeover, Russia’s VTB Group used a Mauritius-based investment vehicle Numetal, where Rewant Ruia—Essar Group promoter Ravi Ruia’s son—held 25% 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 non performing assets (NPAs) from participating in auctions.
Essar Steel was among the initial 12 companies identified by the Reserve Bank of India for insolvency proceedings. It has a loan exposure of Rs37,284 crore.