INSUBCONTINENT EXCLUSIVE:
NCLAT had asked ArcelorMittal to clear Rs 7,000 crore dues to qualify for the acquisition.New Delhi: The Supreme Court Tuesday agreed to
hear tomorrow a plea of Arcelor Mittal seeking extension of time for payment of Rs 7,000 crore as ordered by NCLAT last week for its bid to
become eligible for Essar Steel
The apex court refused urgent hearing for ArcelorMittal's plea for payment of Rs 7,000 crore by today for its second bid to become eligible
A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud said, "We will hear the plea tomorrow".The National
Company Law Appellate Tribunal (NCLAT) had last Friday pronounced judgement, saying Russia's VTB Group-backed Numetal's second bid was
eligible and asked ArcelorMittal to clear dues of its other subsidiaries to remove the stigma of defaulter by September 11 to become
eligible.Anil Aggrawal's Vedanta is a third qualified bidder for Essar Steel whose lenders have initiated insolvency proceedings for
recovery of around Rs 49,000 crore dues.ArcelorMittal had yesterday moved the apex court challenging the NCLAT order which held that
Numetal's Rs 37,000 crore in second-round bid for Essar Steel was valid.NCLAT had also asked the rival bidder ArcelorMittal to clear Rs
7,000 crore dues of its previously associated firms to qualify for the acquisition.The appellate tribunal, on September 7, had asked
lenders, who are auctioning Essar Steel to recover over Rs 49,000 crore of unpaid loans, to consider the second round bids of Numetal and
Vedanta.ArcelorMittal's bid will be considered if it pays dues by September 11, it had said.For ArcelorMittal India (AMI), which was the
only other bidder besides Numetal in round-1, the NCLAT held that it needs to remove the "stigma of defaulter" attached to it because of its
previous 29 per cent stake in Uttam Galva Steel and KSS Petron.The NCLAT held that the first round of bid by Russia's VTB Group-backed
Numetal in February was ineligible as the firm was 25 per cent owned by Rewant Ruia, scion of Essar Steel's promoter Ruia family
But, he exited the firm before the second round of bid was submitted in March, making Numetal eligible.NuMetal and steel tycoon Lakshmi
Mittal-led ArcelorMittal had in February submitted separate bids to takeover Essar Steel
The Committee of Creditors (CoC), however, disqualified both bids saying their promoters were tied to companies, which were bank loan
defaulters and so ineligible under Section 29A of the Insolvency and Bankruptcy Code.The second round of bids was called where JSW Steel
joined NuMetal to put in a bid of Rs 37,000 crore, while Vedanta Ltd entered the fray as a third bidder
AMI too put in a bid.Both NuMetal and Essar Steel had challenged disqualification of the first round of bids in the Ahmedabad-bench of the
National Company Law Tribunal (NCLT), which did not give any relief to bidders but has asked the CoC to take another look at bids before
CoC sought a second round of bids by April 2.The NCLT order was challenged by both bidders in NCLAT
After the NCLT order, AMI had offered to repay any outstanding loans owed by Uttam Galva Steels Ltd, where it held promoter stake, and KSS
The steelmaker had placed Rs 7,000 crore in an escrow account, with the condition that lenders disqualify Numetal's bid.
