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The insolvency resolution professional (IRP) of Essar Steel has called for a meeting of the bidders and Committee of Creditors (CoC) on Monday.
The IRP is expected to open the second round of bids placed by all the three bidders — Numetal, ArcelorMittal and Vedanta — as per the direction of the National Company Law Appellate Tribunal (NCLAT).
The IRP has 33 more days to find a suitor for the stressed asset.
The NCLAT, in its judgment on Friday, had said that a long period had been taken due by the pendency of the case before the adjudicating authority (NCLT), and thereafter before the appellate tribunal (NCLAT).
The adjudicating authority could therefore exclude the period the appeal was pending before the NCLAT (April 26 to September 7, 2018) for the purpose of counting the total insolvency process period of 270 days, it added.
The new deadline for case is now October 10.
Deadline for repayment
Further, the two-member NCLAT Bench headed by Chairman Justice SJ Mukhopadhaya set a deadline of September 11 for ArcelorMittal to clear the ₹7,000-crore dues of its units Uttam Galva Steel and KSS Petron to remain in the race.
NCLAT has said ArcelorMittal’s deposit in its own escrow account does not qualify as payment of the overdue amount.
Essar Steel, which defaulted on ₹44,000-crore loans, was among the initial 12 companies identified by the RBI for insolvency proceedings.
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