India News
Search Web Directory
News Home
Essar Steel bid decision likely only after clarification on Article 29A
Posted on 13th March 2018
The resolution professional (RP) for Essar Steel is unlikely to take a decision on the resolution plans it has received from ArcelorMittal and Numetal until the government provides more clarification on Article 29A of the Insolvency and Bankruptcy Code (Amendment) Bill 2017, sources said. Article 29 A spells out the criteria on the basis of which a bidder can be considered ineligible to bid for assets admitted by the National Company Law Tribunal for resolution. Sources said the government is expected to issue clarification on this article, which will help the RPs and committee of creditors to take a decision on plans received from bidders who may be considered ineligible under this article. The issue is believed to have been discussed at a meeting of the Insolvency and Bankruptcy Board of India (IBBI) in New Delhi on Monday, but details of the outcome weren’t immediately available. “Both the bidders (for Essar) have submitted multiple legal arguments supporting their bids, and if the RP recommends one of the bids, the other will definitely challenge it in the court. The advisers to the RP have not submitted any recommendation as well. A decision is likely to be taken after the government issues its clarification,” a source with direct knowledge of the development said.

Last week, two proposed meetings between the CoC and the RP to discuss the resolution plans were cancelled. The RP for Essar Steel is Satish Kumar Gupta. Consultancy firm Grant Thornton and law firm Cyril Amarchand Mangaldas are understood to be the two advisers to the RP on this matter. Bankers, too, are hesitant about taking a decision on the bids although both the resolution plans may be legally sound. A banker familiar with the development had told FE that they are uncomfortable with the bidders even through they may be eligible as per the IBC norms. The eligibility of the bids is being questioned in the context of the amendment to the Insolvency and Bankruptcy Code (IBC), which categorically states that promoters of defaulting companies are not allowed to bid unless they repay all pending loans before submitting the resolution plan. While ArcelorMittal’s bid could face an eligibility test because of a stake that it held in Uttam Galva Steel, a defaulter on banks’ books, Numetal’s bid could run into trouble since one of the persons associated with the company, Rewant Ruia, is related to the promoters of Essar Steel.

ArcelorMittal has sold its stake in Uttam Galva Steel. A spokesperson for Numetal had earlier told FE that Numetal is a fully eligible resolution applicant and has submitted its resolution plan for Essar Steel. An ArcelorMittal spokesperson had said, “As we have previously said, we do not believe there is any legal basis under which ArcelorMittal would not be considered eligible to participate in the resolution process. ArcelorMittal was never the promoter of Uttam Galva. We had no board representation and no involvement in the management of the company even before selling our shareholding. ArcelorMittal is an internationally renowned, financially strong credit-worthy investor with an AA rating. We have invested successfully in many countries and developed a reputation for our ability to turn around distressed or under-performing assets. Section 29A of the IBC was not designed to prevent reputed, financially strong businesses, with no prior involvement with the asset in question from participating.”

Related Companies: Essar Steel   

Other Latest News
At $768 bn, Amazon is second most valuable US-listed company; tops Alphabet
Posted on 21st March 2018 became the second most valuable publicly listed US company on Tuesday, surpassing Google parent Alphabet Inc for the first time.

Amazon shares finished up 2.69 percent at $1,586.51, for a market capitalisation of $768 billion, underscoring Wall Street's confidence in its relentless expansion into cloud computing, groceries and other new businesses.

Indian companies most concerned about rising protectionism: HSBC survey
Posted on 21st March 2018
Indian companies are most concerned about increasing protectionism around the world, a report said on Wednesday.

"The survey data shows that almost nine of 10 businesses in India feel that governments are turning increasingly protectionist, leading to a rise in the cost of doing international business, altering trade routes and raising hurdles to obtain trade finance," said the HSBC report "Navigator: Now, next and how for business".

Reliance Communications gets bondholders' nod for asset sale to Jio
Posted on 21st March 2018
India's Reliance Communications Ltd (RCom) said on Wednesday its bondholders had approved their asset-sale plan, that includes the sale of certain assets to upstart rival Reliance Jio Infocomm Ltd.

Holders of the debt-laden telecom operator's $300 million bonds have also approved the monetisation of other real-estate assets, RCom said in a statement.

Ravi Shankar Prasad poses 3 questions to Congress over its alleged links with Cambridge Analytica
Posted on 21st March 2018
Information Technology Minister Ravi Shankar Prasad has alleged that the Congress had liaised with data analytics company Cambridge Analytica, which is in the eye of the storm over misuse of data sourced from Facebook.

Information Technology Minister Ravi Shankar Prasad has alleged that the Congress had liaised with data analytics company Cambridge Analytica, which is in the eye of the storm over misuse of data sourced from Facebook.

Afghanistan: At least 26 killed, several wounded in Kabul explosion; ISIS claims responsibility
Posted on 21st March 2018
At least 26 people were killed and several others wounded in an explosion in Afghanistan capital Kabul on Wednesday.

The explosion took place as the Afghan capital celebrated the Nawruz holiday marking the start of the Persian new year.

According to ToloNews, the blast took place at the Kart-e-Char area in PD3, near Ali Abad hospital and Kabul University.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Essar Steel bid decision likely only after clarification on Article 29A
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for Essar Steel bid decision likely only after clarification on Article 29A

Most Read News

ICICI Bank offers MSMEs instant overdraft facility

Nirav Modi, Vijay Mallya, and 29 other Indian fugitives owe Rs40,000 crore

42 IndiGo flights cancelled for today

Maruti ties up with B-schools to train dealership execs

This big update will change how you use WhatsApp groups; here’s what it is

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018
    All Rights Reserved
Privacy Statement