Sajjan Jindal, managing director of JSW Steel Ltd., speaks at a conference in Mumbai. Photographer:Prashanth Vishwanathan/Bloomberg News.

ArcelorMittal Hits Out At JSW Steel, Calls Decision On Monnet Ispat ‘Mockery’

ArcelorMittal took a jibe at JSW Steel Ltd. over the latter's bid resolution plan getting approval from the committee of creditors of Monnet Ispat and Energy Ltd.

The CoC of debt-laden Monnet Ispat and Energy Ltd., which is undergoing insolvency proceedings, had approved the resolution plan submitted by the only bidder Sajjan Jindal’s JSW Steel along with AION Capital.

In a tweet yesterday, ArcelorMittal hit out at Sajjan Jindal directly.

The tweet was in response to yesterday’s development in which the CoC had approved the resolution plan of JSW-AION, a source said.

In response, JSW Steel tweeted that it has gone through the rigour of scrutiny, and that the intention of unfounded allegations may be to defame JSW Steel or probably using insufficient or incorrect interpretation of information to mislead the general public.

Sajjan Jindal’s sister is married to Sandeep Jajodia, promoter of Monnet Ispat and Energy -- the firm facing insolvency proceedings and owes more than 10, 000 crore to its lenders.

JSW Steel in a statement said it has declared as qualified resolution applicant as per the provisions of section 29(A) of Insolvency and bankruptcy code 2016.

“The intention of unfounded allegations may be to defame JSW Steel or probably using an insufficient or incorrect interpretation of information to mislead the general public. JSW Steel adheres to highest standards of corporate governance,” it said without naming ArcelorMittal.

JSW Steel has gone through the rigour of scrutiny. After the thorough examination of facts, JSW Steel is declared as qualified resolution applicant as per the provisions of section 29(A) of Insolvency and bankruptcy code (IBC) 2016 not only in Monnet but in other stressed accounts, it added.