Numetal is arguing against a possible move by Essar Steel's lenders to call for fresh bids. Also, Numetal will contend that ArcelorMittal shouldn't be given 30 days to rework its proposal
The Numetal consortium Thursday moved the National Company Law Appellate Tribunal (NCLAT) against a possible rejection of its bid for Essar Steel by the Committee of Creditors.
The move comes even as the Committee of Creditors (CoC) is expected to convene either on Friday or Saturday to decide the next course of action. The CoC, consisting of Essar Steel's lenders, had met on Tuesday, but the meeting proved to be inconclusive.
The NCLAT will take up Numetal's application on Friday.
Numetal has moved against CoC's possible decision to turn down its bid - along with ArcelorMittal's - in the first round of bidding.
related news
The lenders found bids by ArcelorMittal and Numetal below the fair value. "While ArcelorMittal's bid was 60 percent of the fair value, that of Numetal was 40 percent of the fair value," said a source close to the development.
Now the CoC is debating whether it should call for a fresh round of bidding, which has already evoked interest from JSW Steel and Vedanta Resources.
The other option for CoC is to take up the two bids, but give each of the bidders 30 days to rework their proposals.
But Numetal may also argue against this at the NCLAT. "The company is against this provision being given to ArcelorMittal, which was a promoter in Uttam Galva Steels when it submitted the bid for Essar Steel," said a source close to the development.
The Insolvency and Bankruptcy Code prevents promoters of defaulting companies from bidding for stressed assets.
Uttam Galva Steels is on the second list of companies that may be referred to the National Company Law Tribunal (NCLT).