NCLT bench directing the resolution professional to place before the CoC the first round of bids from NuMetal and ArcelorMittal.
JSW Steel is planning to go solo if fresh bids are invited for Essar Steel, said a report in Business Standard.
As per the report, the new plan comes in the wake of a new NCLT order that hints towards a new proposal inviting bids from all interested parties.
According to the report, Seshagiri Rao, joint managing director and chief financial officer, JSW Steel said the new proposal will allow his firm to bid directly for Essar Steel, an option that was not present earlier as CoC had only allowed shortlisted firms to take part in the bidding process. This in turn had prompted JSW to partner with NuMetal to become part of the bidding process.
On the other hand, CoC is expected to meet soon to take a decision regarding the bidding. This is reportedly in the wake of the Thursday order by the NCLT bench directing the resolution professional to place before the CoC the first round of bids from NuMetal and ArcelorMittal.
The CoC will now have to consider a host of problems including provision that disallows a person from submitting a resolution plan if he has an account that has turned a non-performing asset (NPA) for more than a year. It will also have to decide upon whether the declassification by ArcelorMittal in Uttam Galva and KSS Petron will make it eligible for Essar bid, the report added.
“What the NCLT order is trying to say is that whatever ineligibility we have found in the plan for 29(A), as per 30(4) we have to give them 30 days’ time to rectify the same. In case of NuMetal, now where the bidders have only changed, as per the order they can now rectify their disability as per 29(A). In case of ArcelorMittal, it appears that the court wants the payment to be done,” a CoC counsel was quoted saying in the report.
First Published: IST