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.