The Supreme Court on October 4 granted one more chance to ArcelorMittal and Russia’s VTB Capital-backed NuMetal to bid for bankrupt Essar Steel after clearing their outstanding dues in two weeks time.
After being stuck in a long-drawn legal battle with Numetal, Lakshmi Mittal’s ArcelorMittal on Wednesday said that it has approved the payment of Rs 7,469 crore to clear overdue debts of Uttam Galva and KSS Petron to become eligible for acquiring bankrupt Essar Steel.
The Supreme Court on October 4 granted one more chance to ArcelorMittal and Russia’s VTB Capital-backed NuMetal to bid for the company after clearing their outstanding dues in two weeks time. The apex court held both of them ineligible under section 29A of the Insolvency and Bankruptcy Code (IBC). The SC deadline is October 18.
“ArcelorMittal announces that in-line with the Indian Supreme Court ruling dated 4 October 2018, it has approved a payment of 7,469 crore rupees (approx. $1 billion) to the financial creditors of Uttam Galva and KSS Petron to clear overdue debts…,” the company said in a statement on Wednesday.
Meanwhile, media reports said that Russia’s VTB Group, which had bid in a consortium with Numetal, has petitioned the court to make an offer alone. The top court had observed that there was a “looming presence” of Rewant Ruia, the son of Essar Steel’s owner Ravi Ruia, in Numetal even as his stakes were bought by VTB. JSW Steel is also seeking legal opinion on whether it can bid for the company alone.
The section 29A was introduced via an ordinance to bar wilful defaulters, defaulter promoters and related parties from acquiring another company at lower prices. The amendment was passed in the winter session of 2017-18.