NuMetal can bid for Essar Steel: NCLAT

However, rival ArcelorMittal has to clear the dues of 2 firms to be eligible to bid
The National Company Law Appellate Tribunal (NCLAT) on Friday ruled as eligible the second bid of Russian VTB Bank-promoted consortium NuMetal for debt-ridden Essar Steel. And, rival bidder ArcelorMittal would have to first clear all the dues of Uttam Galva and KSS Petron, in which it holds stakes, to become eligible to bid for the steelmaker, the appellate tribunal said.
NCLAT gave ArcelorMittal time till September 11 to clear all the dues of the two firms saying that the “stigma will continue” till the payment of all arrears. Both NuMetal and ArcelorMittal had moved the NCLAT over bidding eligibility. They had filed individual petitions challenging their disqualification in the first round of bids by the Committee of Creditors (CoC). NCLT, in April, quashed the first round of bidding for Essar Steel on grounds that the CoC and the resolution professional did not follow the procedure prescribed under the Insolvency and Bankruptcy Code. Earlier, ArcelorMittal had claimed that it addressed the concerns raised by the Committee of Creditors as it deposited Rs. 7,000 crore in an escrow account of State Bank of India to clear the defaulted dues of Uttam Galva and KSS Petron. NuMetal also removed Rewant Ruia, son of Essar Group co-founder Ravi Ruia, from the company’s shareholding to become eligible to bid.
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