A furnace strikes sparks on a red hot steel beam inside a steel plant. (Photographer: Waldo Swiegers/Bloomberg)

Bidders Disagree On Essar Steel Re-Bid

ArcelorMittal India and VTB Bank-led Numetal Mauritius disagreed on whether fresh bids should be called for Essar Steel Ltd. as part of the insolvency proceedings currently underway.

The Essar Steel case was heard at the National Company Law Tribunal in Ahmedabad today, but no conclusion was arrived at. The judge has now posted the matter for April 2.

Here are the highlights from today’s hearing at the NCLT:

  • Numetal does not want fresh bidding process.
  • Numetal says that a single shareholder, Rewant Ruia, shouldn’t be considered as grounds for disqualification.
  • ArcelorMittal says it doesn't mind fresh bids.

ArcelorMittal India and Numetal Mauritius were deemed ineligible to bid for debt-ridden Essar Steel by the committee of creditors and the resolution professional last week.

In a plea submitted before the Ahmedabad NCLT on March 20, Numetal had said its resolution plan was not properly assessed by the resolution professional. The Mauritius-based entity also asked for a declaration of eligibility from the NCLT. On March 26, ArcelorMittal India said it will challenge the decision of Essar Steel's resolution professional to disqualify its bid.

With inputs from Rahul Nair of The Quint.