Essar Steel to see new round of bidding after Numetal, ArcelorMittal's bids are declared ineligible
Lenders led by State Bank of India voted for another round of bids for Essar Steel after the resolution professional (RP) concluded that both offers — by ArcelorMittal and Numetal — are ineligible under the current Insolvency and Bankruptcy Code (IBC).
The committee of lenders met on Wednesday to discuss the option of going for a second round of bidding for Essar Steel. In all likelihood, lenders will set April 2 as the last date for submitting binding bids afresh.
The resolution professional (RP), Satish Gupta, backed by Alvarez and Marsal, had told lenders recently that both bids may not be eligible. Vedanta Resources, Tata Steel, Nippon Steel, Numetal and ArcelorMittal are the five entities that submitted expressions of interest for Essar Steel, which is undergoing bankruptcy proceedings after failing to repay Rs 49,000 crore to lenders.
The committee of lenders met on Wednesday to discuss the option of going for a second round of bidding for Essar Steel. In all likelihood, lenders will set April 2 as the last date for submitting binding bids afresh.
The resolution professional (RP), Satish Gupta, backed by Alvarez and Marsal, had told lenders recently that both bids may not be eligible. Vedanta Resources, Tata Steel, Nippon Steel, Numetal and ArcelorMittal are the five entities that submitted expressions of interest for Essar Steel, which is undergoing bankruptcy proceedings after failing to repay Rs 49,000 crore to lenders.
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