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ArcelorMittal Numetal hearing in SC to resume on 25 - Report

Steel News - Published on Mon, 24 Sep 2018

Image Source: Hindustan Times
Money Control reported that the ongoing Supreme Court hearing on applications from ArcelorMittal and Numetal may have started over the eligibility of the Lakshmi Mittal-company to bid for Essar Steel. While ArcelorMittal has questioned the need to pay dues of INR 7,000 crore to become an eligible bidder, Numetal wants to know why the National Company Law Appellate Tribunal is giving its arch rival the time to make the payment. But in the last two sessions of the SC hearing, focus has shifted to the legality of ArcelorMittal divesting its stake in Uttam Galva Steels. Numetal’s advocate Mukul Rohatgi called ArcelorMittal's sale of Uttam Galva stake at INR 1 a share as a case of fraud. He said “The stake sale is misleading the public, banks and the court.”

The hearing will resume on September 25.

In its order, the NCLAT had given ArcelorMittal three days to clear the dues, even as it declared Numetal eligible. The dues are that of Uttam Galva Steels and KSS Petron, in which ArcelorMittal was a shareholder, before it divested its stakes. According to clause 29A of Insolvency and Bankruptcy Code, a promoter of a defaulting company can’t bid for stressed assets.

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Posted By : Ratan Singh on Mon, 24 Sep 2018
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