Workers produce train carriage wheels on Maanshan Iron & Steel Co. Ltd.’s old assembly line at the Ma Steel’s plant in Maanshan, near Nanjing, China. (Photographer: Qilai Shen/Bloomberg News)

Essar Steel Creditors’ Panel Meeting With Resolution Professional Deferred Again

A decision on the eligibility of ArcelorMittal’s and Numetal’s bid for debt-laden Essar Steel could not be taken even today as the meeting of the resolution professional and committee of creditors was postponed for the third time, sources said.

The meeting is now expected sometime early next week, a source told PTI. “Coming Monday and it will be one month (since bids were submitted). No decision on eligibility of the bidders have been taken,” another source added.

Bids for Essar Steel were submitted on Feb. 12.

While Luxembourg-based ArcelorMittal's partner is Nippon Steel & Sumitomo Metal Corp for the takeover, Russia's VTB Group used a Mauritius-based investment vehicle Numetal, where Rewant Ruia - Essar Group promoter Ravi Ruia's son - held 25 percent stake.

Earlier, the March 5th meeting of Essar Steel's Committee of Creditors and the Insolvency Resolution Professional was deferred to March 7 as the IRP and the CoC could not decide on the eligibility of the bidders who have submitted resolution plans for Essar Steel. The meeting was again deferred for March 8 (today).

“They are still figuring out that who are eligible, not eligible,” a source said on the condition of anonymity. “The legal advisors to the RP are yet to submit the report to the RP; then RP will take it to CoC.”

Essar Steel was among the initial 12 companies identified by the Reserve Bank of India for insolvency proceedings. It has a loan exposure of Rs 37,284 crore.