Supreme Court allows ArcelorMittal and NuMetal to submit bids for Essar Steel after clearing dues
ArcelorMittal has to pay Rs 7,000 crore to Uttam Galva and KSS Petron.
The Supreme Court on Thursday granted mining major ArcelorMittal and Russia’s VTB Capital-backed NuMetal two weeks to clear their outstanding dues and submit a bid for Essar Steel, PTI reported. ArcelorMittal owes Rs 7,000 crore to Uttam Galva and KSS Petron.
Justices RF Nariman and Indu Malhotra said both the firms were ineligible under the amended Insolvency and Bankruptcy Code to bid for Essar Steel, but granted them one more opportunity after the Committee of Creditors submitted a plea that it does not want Essar Steel to be liquidated.
The court also asked the Committee of Creditors to decide on the two companies’ bids within eight weeks. It said a 66% majority of the committee would finalise the bid. If the majority does not approve any bid, Essar Steel will be liquidated, reported Mint.
The Supreme Court’s order is based on ArcelorMittal’s appeal against a decision that the National Company Law Appellate Tribunal passed on September 7, reported The Hindu. The tribunal had allowed NuMetal to place second round bids worth Rs 37,000 crore for Essar Steel while ordering ArcelorMittal to first clear its dues.