By Ritu Singh May 9, 2018 11:37:48 AM IST (Updated)
The lenders of the steel-maker will allow ArcelorMittal and NuMetal to clear dues, and both companies have been issued notices by the creditors' committee to obtain "no dues" certificate from banks within seven days.
Essar Steel's Committee of Creditors cleared a resolution to allow bids from NuMetal and ArcelorMittal, sources familiar with the matter said.
The lenders of the steel-maker will allow ArcelorMittal and NuMetal to clear their dues, and both companies were issued notices by the creditors' committee to obtain a "no dues" certificate from banks within seven days.
The development comes after ArcelorMittal and NuMetal met Essar Steel's creditor's Committee last week to explain the details of their offers.
The NuMetal consortium with Ruia was asked to clear dues worth nearly Rs 1 lakh crore for Essar Group companies, while ArcelorMittal has to clear dues worth nearly Rs 7000 crores of Uttam Galva Steels and KSS Petron.
While ArcelorMittal said it would clear its dues, NuMetal said it was not liable to clear all its dues.
The National Company Law Appellate Tribunal is set to hear pleas of NuMetal and ArcelorMittal on May 17 on NCLT Ahmedabad’s order.
The Ahmedabad bench of the National Company Law Tribunal (NCLT) had said that the invitation of second round of bids was invalid as the Resolution Professional had not followed due procedure.
The Tribunal had sent the Essar Steel matter back to the Committee of Creditors and Resolution Professional (RP).