IndiaCatalog.com
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
Sensex opens 100 points higher after GST Council cuts rates
Posted on 23rd July 2018
Mumbai: The benchmark BSE Sensex advanced over 100 points in early trade on Monday led by gains in FMCG stocks after the GST Council on Saturday cut rates on over 100 items, amid fresh capital inflows by foreign funds and strengthening rupee.

The 30-share index was trading higher by 114.10 points, or 0.31 per cent, at 36,610.47. All the sectoral indices, led by FMCG, consumer durables and power stocks were trading in the positive zone, rising up to 1.21 per cent.


Why Reliance Jio, Amazon are two sides of the same coin
Posted on 23rd July 2018
In January, Amazon, along with JPMorgan Chase and Berkshire Hathaway, announced a new healthcare company. The three companies merely said it would provide high-quality healthcare for their employees and families at a reasonable cost.

But healthcare investors got nervous at the prospect, selling off shares of established players like UnitedHealth and Anthem.


With car-sized probe, NASA set to launch first mission to touch the Sun
Posted on 23rd July 2018
NASA is on schedule to launch mankind's first mission to the Sun - a car sized probe that will swoop to within 4 million miles of the solar surface, facing heat and radiation like no spacecraft before.

The Parker Solar Probe, which is expected to take off no earlier than August 6 aboard United Launch Alliance Delta IV Heavy, will study the Sun closer than any human-made object ever has.


Air India apologises for denying Indian table tennis team to board flight
Posted on 23rd July 2018
Terming the incident unfortunate, the national carrier Air India has tendered an apology to the Indian table tennis team, who were denied boarding on the Delhi-Melbourne flight on Sunday.

In a statement, an Air India spokesperson said, "This was a very unfortunate incident, we apologise to the players and we are arranging next available flights."


BSNL sold 4,000 satellite phones in last year; aims to sell 10,000 handsets by March 2019
Posted on 23rd July 2018
A year since the high-profile launch of its satellite phone services, BSNL has sold 4,000 handsets, majority to government agencies, and expects the number to reach 10,000 by March 2019 riding on fresh demand from corporates and states for the premium service, its Chairman Anupam Shrivastava said.

» 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 Cootera.com 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
Name*
Comments*
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

SBI, PNB and other PSBs alert: Branches likely to be closed in these areas

LIC board gives approval to acquire 51% stake in debt-ridden IDBI Bank

L&T Finance Holdings Q1 net profit rises 71% to Rs 5.38 billion

Ashok Leyland slumps 14% on demand worries

TCS rides on AI, big data to pip Infosys in resurgent BFSI space

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
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018 IndiaCatalog.com
    All Rights Reserved
Privacy Statement