Russia's VTB likely to seek solo bid for debt-laden Essar Steel in court

Russia's VTB, the majority partner in Numetal, may file an independent application in the Supreme Court for a solo bid for Essar Steel, said people close to the development.

The Supreme Court in its judgment on October 4 had granted an opportunity to ArcelorMittal and Numetal to clear dues for non-performing assets (NPAs) in two weeks to be eligible to bid for Essar Steel. The court had exercised its extraordinary power under Article 142 of the Constitution for the purpose.

While for Arcelor, the dues on account of Uttam Galva and KSS Petron would be around Rs 70 billion, for Numetal the payment could be upwards of Rs 390 billion on account of Essar.

Moreover, Numetal might have to pay for Ruia group companies that had been classified as NPAs for more than a year before the submission of resolution plan.

People in the know indicated that since the apex court had not found VTB to be ineligible, it was discussing with lawyers the option of moving an application seeking permission for a solo bid.