Essar Steel insolvency case: Second round bids to be opened today

The second round of bids for Essar Steel will be opened in the presence of lenders on Monday, sources close to the development said.

The offers by three bidders — Numetal (minus Aurora Enterprises), ArcelorMittal, and Vedanta — will be opened in line with the September 7 order of the National Company Law Appellate Tribunal (NCLAT). Numetal was joined by JSW as an investor in a step-down subsidiary and ArcelorMittal with Nippon Steel.

In the second round, Numetal had dropped Aurora Enterprises, of which Rewant Ruia is the ultimate beneficiary, which made its bid eligible. Rewant Ruia is the son of Ravi Ruia, a promoter of Essar. According to the NCLAT order, ArcelorMittal has time till September 11 to clear its dues on account of defaulting firms, Uttam Galva Steels and KSS Petron, to become an eligible bidder for Essar. So, though bids will be opened on Monday, Arcelor will have time till Tuesday to make its second offer eligible.

Numetal and ArcelorMittal are eligible to bid for Essar Steel, says NCLAT

The National Company Law Appellate Tribunal (NCLAT) on Friday said that Numetal and ArcelorMittal are eligible to bid for Essar Steel. ArcelorMittal has three days to clear its dues and become a standard asset to bid for Essar Steel. The tribunal has ordered that Committee of Creditors (CoC) should negotiate to get the highest value. With this, NCLT Ahmedabad bench order has been set aside.

Numetal had moved the National Company Law Appellate Tribunal against NCLT, which allowed ArcelorMittal to bid for Essar Steel by paying up dues within 30 days. ArcelorMittal had filed a separate appeal against being disqualified to bid for Essar Steel.

Numetal had told NCLAT that it was revising its bid for beleaguered steel giant Essar Steel. In court, Numetal has said that it is willing to offer Rs 370 billion for Essar Steel in the second round of bids.

News digest: S&P holds India rating, insolvency ordinance, and more

S&P refuses to do a Moody's; maintains status quo on India's rating

Credit rating agency Standard & Poor’s (S&P) on Friday retained India’s sovereign rating at the lowest investment grade with a stable outlook. It attributed its decision to a weak fiscal position, particularly of states, high government debt, and low per capita income.

S&P’s rating remains at BBB-, one notch above junk and a notch below what Moody’s Investors Service upgraded India to recently. Read more

India needs to look beyond Buenos Aires, says Suresh Prabhu

With a little over a fortnight left before the World Trade Organization’s biennial ministerial conference gets underway at Buenos Aires in Argentina, Commerce and Industry Minister Suresh Prabhu tells  that India should focus on strategising how to scale up its exports in tandem with the economy reaching the $5 trillion mark in less than a decade. Read more

Cancer, cardiac among 51 essential drugs under NPPA price cap

National drug pricing regulator NPPA on Friday said it has capped prices of 51 essential formulations, including those used for the treatment of cancer, pain, heart conditions and skin problems. The prices have been slashed in the range of 6 to 53 per cent. Read more

Insolvency Code ordinance: Promoters' loss is PEs' gain

Private equity (PE) players are getting ready to bid for stressed assets, which they expect to bag at attractive valuations after an ordinance amended the Insolvency and Bankruptcy Code (IBC). The ordinance has practically barred most promoters of the defaulting companies from bidding for their assets in the bankruptcy auction. Read more
READ MORE

ArcelorMittal denies French pollution charge, says 97% residue recycled

Facing allegations of pollution, steel giant ArcelorMittal has said 97 per cent of residues from the Florange site in France are recycled or recovered and its internal probe has concluded that there is no wrong-doing.

The statement comes amid reports by French newspaper The Repulicain Lorrain that the public prosecutor's office in Thionville has opened an investigation into the alleged acid pollution of ArcelorMittal's crassier in Florange of France.

"ArcelorMittal and all of Florange's staff work are in full compliance with our authorisations to operate and store our residues. For the past 10 years, the Florange site has considerably reduced the volume of residues deposited in the storage area and today, 97 per cent of the residues from the site are recycled or recovered," said Eric Niedziela, CEO of ArcelorMittal Atlantique and Lorraine, in a statement.

"Our internal investigation concludes that there is neither fraud nor pollution," Niedziela said.

Announcing the conclusion of the internal investigation, Niedziela stressed: "We take our responsibilities very seriously and continue to work intensively to improve treatment and recovery of our residues to reduce our environmental footprint."

The steelmaker said: "No dumping of pure acid has been done... The acid used for the pickling process is systematically regenerated and reused."

READ MORE