Mumbai: The lenders of Essar Steel Ltd on Wednesday asked ArcelorMittal Netherlands NV and Numetal Mauritius to clear their outstanding dues in order to be considered as eligible resolution applicants for the beleaguered steel company. While the firms have not been provided an official notice yet, the creditors have asked them to table the solutions within next seven days, said two people close to the development.
Both the companies made their presentations to the CoC on Wednesday discussing their eligibility in the first round of bidding. The committee of creditors will again meet on Saturday to discuss the cures suggested by ArcelorMittal and Numetal. The official notice for the seven-day period is also likely to be served to both the parties on Saturday as well.
“We have asked ArcelorMittal to clear off their entire dues in Uttam Galva and KSS Petron. As far as Numetal is concerned, for them to become eligible either Rewant Ruia should move out or the Essar account should be regularised,” the first person mentioned above said. He further said that so far the companies have not made any official commitments to clear their dues.
To be sure, Rewant Ruia is the beneficiary of the trust which backs Aurora Enterprises which in turn holds 25% stake in Numetal. Rewant Ruia is son of Ravi Ruia, vice chairman of Essar Group. Aurora’s shareholding in Numetal was the chief cause for disqualification in the first bidding round.
Again, even though ArcelorMittal has been reclassified as a public shareholder of Uttam Galva for a promoter earlier, the dues are required to be cleared in entirety. Uttam Galva features in the second list of non-performing accounts referred by the Reserve Bank of India for resolution under the insolvency and bankruptcy code.
Mint on 16 April reported that Uttam Galva has offered to clear all its dues as its earlier proposal to pay back 51% of the outstanding amount was rejected by the lenders . ArcelorMittal also owned 32% stake in KazStroyService in Kazakhstan which wholly-owned KSS Petron. KSS Petron was classified as an NPA in 2015.
So far, the lenders have not decided on invitation bids from new resolution applicants.