India News
Search Web Directory
News Home
Essar Steel lenders may not allow Numetal to change structure in second bid
Posted on 18th June 2018
Lenders to Essar Steel may not allow Numetal to change its corporate structure stated in the second round of bidding if it comes up for consideration.

“The committee of creditors (CoC) may not allow Aurora Enterprises to be dropped from Numetal because this is not a fresh request for proposal (RFP),” a major lender said.

Sources close to Numetal, however, pointed to the order passed by the National Company Law Appellate Tribunal (NCLAT) on May 22 this year. The order said during the pendency of appeals, the resolution professional (RP), the CoC and the adjudicating authority would not pass any order approving or rejecting plans, or on liquidation.

The CoC has, however, made no decision. Right now, the matter is before the NCLAT, where hearing will resume on July 2.

Sources also said the RFP was submitted by Numetal, not Aurora.

Two amendments were made to the RFP, inviting resolution plans. The RFP was amended by the first addendum on February 8 and the second addendum on March 23.

Numetal and ArcelorMittal submitted the first round of bids on February 12 and the second round on April 2.

In the second round, Numetal submitted the bid with a revised corporate structure and was joined by JSW Steel as an investor in the step-down subsidiary. ArcelorMittal and Vedanta were the other bidders.

If Numetal is not allowed to change its corporate structure, the implications of Section 29A are likely to come into play.

In the first round of bidding for Essar, ArcelorMittal, and Numetal were given seven days to “cure” their ineligibility, in accordance with the order of the Ahmedabad Bench of the National Company Law Tribunal (NCLT).

“Cure” meant paying outstanding dues. For ArcelorMittal, it meant paying the debts of Uttam Galva and KSS Petron; for Numetal, it was on account of firms connected to Rewant Ruia. Numetal had, however, offered to drop Aurora Enterprises, of which Rewant Ruia is the ultimate beneficiary, even in the first bid. However, lenders had not accepted it as a “cure”.

To become eligible for Essar, ArcelorMittal has transferred Rs 70 billion to an escrow account on account of Uttam Galva and KSS Petron.

However, the lender pointed out that the amount was in escrow and was a conditional offer. The offer was subject to declaring ArcelorMittal a successful and eligible bidder of Essar. The CoC has hence sought guidance from the NCLAT on the matter.

In the NCLAT, Numetal pleaded the second bids be opened while ArcelorMittal, the only other bidder in the first round, opposed it.

The Ahmedabad Bench of the NCLT had found the second round of bids invalid because in the first round, ArcelorMittal and Numetal were not given time to “cure” their ineligibility. Hence, the NCLT had remanded the first round of bids in the RP and CoC for reconsideration.

Both Numetal and ArcelorMittal had filed appeals against the order in the NCLAT.

Related Companies: Essar Steel   

Other Latest News
Trump says India looking at something ‘very strong’ after Pulwama attack
Posted on 23rd February 2019
Asserting that there is a lot of problems between India and Pakistan, US President Donald Trump has said New Delhi is looking at something “very strong” in the wake of the Pulwama terror attack.

Forty CRPF personnel were killed and five injured on February 14 in one of the deadliest terror attacks in Jammu and Kashmir when a suicide bomber of Pakistan-based terror group Jaish-e-Mohammad (JeM) rammed a vehicle carrying a huge quantity of explosives into their bus in Pulwama district.

Pulwama attack: Crackdown on Jamaat-e-Islami J&K, top leaders detained
Posted on 23rd February 2019
Police swooped on Jamaat-e-Islami Jammu and Kashmir members in Kashmir during the intervening night of Friday and Saturday, and detained around two dozen of its cadres, including its chief Abdul Hamid Fayaz, officials said here.

Though police termed the detentions as routine, officials privy to the developments said this is the first major crackdown on the organisation that is part of the Tehreek-e-Hurriyat, a separatist conglomerate.

Lok Sabha polls: Lamp lighting and flag planting as Modi woos Indian voters
Posted on 23rd February 2019
Prime Minister Narendra Modi’s party will reach out to the 220 million Indians it says directly benefited from his policies, as it seeks to counter growing disenchantment just weeks before elections are due.

The Bharatiya Janata Party will begin its outreach program Feb. 26, when leaders and workers will fan across the country to visit potential voters: from women who receive government-subsidized cooking gas to villagers who availed small, cheap loans under an official credit program.

Pulwama attack: Hundreds of Indians protest near Pak consulate in New York
Posted on 23rd February 2019
More than a hundred US-based Indians protested outside the Pakistan consulate in New York on Friday against the terror attack which was carried out by Pakistan-based terror outfit Jaish-e-Mohammed (JeM) on February 14 in South Kashmir's Pulwama.

Waving the tricolour, protesters raised slogans like Pakistan Murdabad, Global terror Pakistan, LeT Pakistan, 9/11 Pakistan, 26/11 Pakistan, Osama bin Laden Pakistan," amongst others.

Railways set to launch massive recruitment drive to fill up 131,000 posts
Posted on 23rd February 2019
Indian Railways is set to come out with an IndicativeNotice on Saturday, initiating the process for filling up 131,000 vacancies. The national transporter had recently faced criticism over the timing of the announcement of these vacancies, as the Election Commission expected to come out with a notification for Lok Sabha polls early next month.

The new set of job notification include recruitment of 100,000 staff in Level-1 (erstwhile Group-DCategories) for which online registration would open on March 12. The registration for remaining 30,000 will happen in three tranches. The eligible candidates for the first tranche of recruitments in Non-Technical Popular Categories can do registration of online applications from February 28.

» 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 lenders may not allow Numetal to change structure in second bid
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 lenders may not allow Numetal to change structure in second bid

Most Read News

IOC signs $1.5 bn deal to buy US crude oil

ArcelorMittal offers Rs 4,800 crore for Essar’s Mahan power project in MP

Aramco eyes deal with Reliance, others for investing in India

L&T Construction wins over ₹7,000-crore contract for building major airport

Moody's changes YES Bank's outlook to stable, stock gains over 2%

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 - 2019
    All Rights Reserved
Privacy Statement