Numetal moves NCLT to prove eligibility for Essar Steel bid | business news | Hindustan Times
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Numetal moves NCLT to prove eligibility for Essar Steel bid

VTB Capital-backed Numetal is one of the bidders for Essar Steel. The competing bid has been submitted by Luxembourg-based ArcelorMittal.

business Updated: Mar 21, 2018 15:58 IST
Press Trust of India, New Delhi
Numetal, led by VTB Capital of Russia, is one of the bidders for the distressed Essar Steel.
Numetal, led by VTB Capital of Russia, is one of the bidders for the distressed Essar Steel.(Aniruddha Chowhdury/Mint)

Numetal Limited on Wednesday said it has approached the NCLT, seeking a declaration for eligibility to submit its plan for Essar Steel, on apprehensions that lenders may not consider its resolution plan the debt-laden steel company.

“Numetal Limited (Numetal) filed an application on March 20, 2018 before the NCLT, Ahmedabad (NCLT) seeking a declaration that Numetal is eligible to submit a resolution plan for Essar Steel India Limited (ESIL),” the company said in a statement issued today.

Numetal, led by VTB Capital of Russia, is one of the bidders for the distressed Essar Steel. Another bid has been submitted by Luxembourg-based ArcelorMittal. The last day to submit the bids was February 12, 2018.

“Numetal apprehends that full facts submitted by Numetal for determination of its eligibility to submit a resolution plan have not been appropriately assessed,” the statement said.

It stressed that the application was necessitated as there is some apprehension that its resolution plan may not be considered properly by the Committee of Creditors (CoC).

| Read: VTB-led group willing to buy out Ruia’s stake in Numetal in bid to win Essar Steel

Accordingly, in the application, the company said all necessary facts for determining the eligibility of Numetal have been placed before the NCLT for an objective assessment.

“The NCLT, on hearing the counsel appearing for Numetal, has issued a notice to the CoC through the Resolution Professional (RP),” it said.

The National Company Law Tribunal (NCLT) also observed that any decision taken or resolution passed by the CoC in the meeting on March 21, 2018 would be subject to the outcome of the application, it added.

“The next date of hearing of the application is April 4, 2018, as per the Attendance-Cum-Order sheet of the hearing of Ahmedabad Bench of NCLT,” it said.