The National Company Law Appellate Tribunal (NCLAT) on Friday admitted Numetal’s plea against the decision of committee of creditors (CoC) of Essar Steel, which said that it needs to repay the existing debt of the steel firm before it is considered eligible to bid for its asset.
The National Company Law Appellate Tribunal (NCLAT) on Friday admitted Numetal’s plea against the decision of committee of creditors (CoC) of Essar Steel, which said that it needs to repay the existing debt of the steel firm before it is considered eligible to bid for its asset. The appellate tribunal’s two-member bench, led by Justice SJ Mukhopadhaya, will now hear the appeal along with the cross appeals of Numetal and ArcelorMittal on May 17.
The tribunal also issued notices to the ArcelorMittal, Resolution Professional (RP) and the committee of creditors (CoC).
The earlier petition of Numetal before the NCLAT is against the April 19 order by the Ahmedabad bench of the National Company Law Tribunal (NCLT) that gave its rival ArcelorMittal a chance to clear dues to banks to become eligible to bid for Essar Steel. ArcelorMittal’s petition before the appellate tribunal, which will also be heard on May 17, has challenged the decision of the RP and CoC which cancelled its first bid. Earlier this week, the resolution professional (RP) Satish Kumar Gupta, on behalf of the CoC, had notified both Numetal and ArcelorMittal that they would have to clear all dues within a week before their bids are considered to be eligible.
Numetal has maintained that the company is a fully eligible resolution applicant as per the Insolvency and Bankruptcy Code, 2016 (IBC). Numetal nor its shareholders have any loans overdue with any creditors in India, its spokesperson said, adding that Numetal’s other shareholders have already bought out Aurora’s shareholding in the company. The RP and the CoC had earlier disqualified Numetal’s bid since one of the persons associated with the company, Rewant Ruia, is related to the promoters of Essar Steel. The shareholders of Numetal include Russia’s VTB Bank and engineering firm Tyazhpromexport, financial investor Aurora Enterprises (in which Ruia has an interest) and commodity trading company Indo International Trading.
via NCLAT admits Numetal plea, hearing on May 17 – The Financial Express