Vedanta seems to be well poised to emerge the preferred bidder for Electrosteel Steels, as the resolution professional (RP) is believed to be in final negotiations with the company on certain terms, sources close to the development said.

While the value of Vedanta’s bid could not be confirmed, FE has learnt that it has submitted the highest bid. This was confirmed in a release by another contender. Vedanta did not comment on queries regarding its bid for Electrosteel Steels.

“The bid by Vedanta is most likely to have been selected for Electrosteel Steels,” a source with direct knowledge said. The committee of creditors met on February 27 in Kolkata to evaluate the bids. The RP, Dhaivat Anjaria, could not be reached for comments.

The loss-making Electrosteel Steels was admitted by the Kolkata bench of the National Company Law Tribunal (NCLT) on July 21, 2017 for resolution under the corporate insolvency resolution process. It received bids from Vedanta, Edelweiss Alternative Asset Advisors, Tata Steel and Renaissance Steel on January 04, 2018.

In a seperate development, Renaissance Steel said in a press release on Tuesday that it has filed a petition in the NCLT requesting it not to allow the RP to further negotiate with the H-1 bidder (Vedanta) till the eligibility of the bidder is determined. It said the matter is expected to come up for hearing on March 08.

This latest move by Renaissance Steel may lead to a delay in the process of selecting the winner of the bids.

Renaissance Steel further said that at the meeting of the committee of creditors held on February 27, all the resolution plans were discussed and Vedanta was declared H-1. The RP was authorised to re-negotiate with Vedanta. It claimed that it had earlier informed the RP that Vedanta and Tata Steel were not eligible to bid as per the clause 29A of the Insolvency and Bankruptcy Code.

The bankers to Electrosteel Steels include State Bank of India, Punjab National Bank, Bank of Baroda and Bank of India among others.

Electrosteel Steels produces pig iron, billets, TMT bars, wire rods and ductile iron pipes, and has an integrated steel and ductile iron pipe plan in Jharkhand, a part of which is still under construction. In FY17, the company reported a net loss of `1,463.48 crore on revenue of Rs 2,867.83 crore, data from its 2016-17 annual report showed.

According to details on its website, the RP has received claims worth Rs 13,570.25 crore from the financial creditors of Electrosteel Steels, and of these, it has admitted claims worth Rs 13,127.45 crore.