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ArcelorMittal, the world’s largest steel manufacturer, has moved the Ahmedabad Bench of the National Company Law Tribunal against Essar Steel’s resolution professional for rejecting its bid.
Interestingly, the only other bidder, Numetal Mauritius, a consortium led by Russia’s VTB Bank, which was also disqualified by the resolution professional, had filed a similar petition last Tuesday to enforce its eligibility. The NCLT will hear Numetal’s application on March 27.
Rejecting both the bidders, the Committee of Creditors (CoC) decided to call bids from all participants who had submitted an Expression of Interest before the February 12 deadline.
The companies, which are now eligible for bidding before April 2, include Tata Steel, Nippon, SSG Capital and Vedanta Resources.
ArcelorMittal, in a statement on Monday, said it firmly believes that its bid for Essar Steel India, submitted on February 12, was fully eligible and, therefore, should have been placed before the Committee of Creditors by the resolution professional.
“However we received formal notification on March 23 that our bid was deemed ineligible due to the technicality of still being a promoter of Uttam Galva even though we had sold our shareholding before submitting our offer,” it said.
Further, ArcelorMittal added that the stock exchanges have confirmed that it has been declassified as a promoter of Uttam Galva.
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