Bidders for Mittal Corp challenge NCLT move to halt voting on plans

Jindal Stainless Ltd and Rimjhim Ispat, which have bid for Mittal Corp, have objected to a bankruptcy court decision to terminate voting midway on the resolution plans for the steelmaker and invite fresh offers in an effort to maximise recovery.

The decision of the National Company Law Tribunal (NCLT) to halt voting was prompted by an improved offer submitted by a rival bidder, Shyam SEL & Power, soon after voting commenced to select the buyer for the company undergoing insolvency proceedings, said two people aware of the development.

Jindal Stainless and Rimjhim Ispat have approached the National Company Law Appellate Tribunal (NCLAT) challenging the NCLT decision to permit the company’s resolution professional (RP) to invite fresh plans. The matter is scheduled to come up for hearing on Thursday (September 15).



The RP, Shailendra Ajmera backed by EY, and Jindal Stainless did not respond to requests for comment. Rimjhim Ispat could not be reached for comment. The RP had received six resolution plans on June 1, following which he conducted a Swiss challenge auction among the applicants, people in the know said. At the Swiss auction, Rimjhim Ispat made the highest offer of `283 crore, followed by Shyam SEL of `257 crore, while Jindal Stainless offered `251 crore, one of the people said.

Subsequently, the RP invited lenders to vote on the resolution plans from August 5.

Soon after the voting commenced, Shyam SEL approached the NCLT, seeking approval to revise its plan for a third time. The NCLT on August 7 ordered to terminate the voting and invite fresh plans. The ruling is contrary to the Insolvency and Bankruptcy Board of India's guidelines that allows revision in plans only twice.