Twitter war has broken out between two top steel makers with ArcelorMittal questioning the selection of JSW Steel-led consortium as the winning bid for Monnet Ispat.
Taking a swipe at JSW Steel promoter Sajjan Jindal, the world's largest steel producer in a tweet said: “Interesting what decision is being taken on Monnet today given it’s clear JSW runs afoul of (Section) 29A (of IBC) as they are related to the existing promoter….who is making the mockery here?"
The tweet was in response to Jindal's earlier comment that ArcelorMittal is not eligible to bid for Essar Steel as it was a promoter of Uttam Galva which has defaulted on its loan. Selling Uttam Galva stake just to make itself eligible for Essar Steel bidding is a mockery of law, Jindal had earlier said without naming ArcelorMittal and Uttam Galva.
In response to ArcelorMittal, JSW Steel tweeted to say the company has gone through the rigour of scrutiny. After the thorough examination of facts, JSW Steel is declared as qualified resolution applicant as per the provisions of sec 29(A) of Insolvency and bankruptcy code (IBC) 2016 not only in Monnet but in other stressed accounts. The intention of unfounded allegations may be to defame JSW Steel or probably using an insufficient or incorrect interpretation of information to mislead the general public. JSW Steel adheres to highest standards of corporate governance, the tweet said.
ArcelorMittal is engaged in an intense competition with VTB Bank-promoted consortium Numetal Mauritius to acquire stressed Essar Steel asset. Incidentally, JSW Steel has also joined hands at the last moment with Numetal to bid for Essar Steel, thus, competing with ArcelorMittal directly.