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ArcelorMittal hits fresh hurdle over GPI dues - ET

Steel News - Published on Fri, 02 Nov 2018

Image Source: SteelGuru
ET reported that Mr Jalesh Grover, the resolution professional of GPI Textiles, filed an interlocutory application at the Ahmedabad bench of the National Company Law Tribunal (NCLT) that says LN Mittal’s company is not eligible to bid for Essar Steel since GPI Textiles has about INR 485 crore in unpaid dues. Grover’s lawyer said ArcelorMittal’s resolution plan should therefore be disqualified under Section 29(A) of IBC. Grover filed the petition against Essar Steel resolution professional Satish Kumar. Nipun Singhvi, an Ahmedabad-based lawyer representing Grover, said “NCLT technically cannot approve ArcelorMittal’s bid without hearing the interlocutory application.”

GPI resolution professional’s application “It is humbly submitted that Shri Pramod Mittal and Vinod Kumar Mittal are real brothers of Shri LN Mittal (who is ultimate shareholder/ promoter of the Arcelor Mittal India Pvt Ltd) and are the promoters as per June 2018 filings at BSE of the company called Gontermann-Piepers (India) Ltd, a company incorporated under the provisions of the Companies Act.”

The move raises the prospect of another twist in the Essar Steel resolution process, which kicked off about a year ago. ArcelorMittal had said on October 26 that it had been declared the highest bidder. The Ruias, Essar Steel’s erstwhile promoters, then made an unexpected pitch to retain the asset, offering to repay all dues.

A person close to ArcelorMittal however said that a similar argument, raised by rival contender Numetal, had been dismissed earlier. A person close to ArcelorMittal told ET “The company has already said on several occasions that there is absolutely no connection between ArcelorMittal’s eligibility and the businesses of Mr Mittal’s brothers. The fact that the CoC has approved ArcelorMittal’s acquisition of Essar Steel and issued a letter of intent demonstrates that ArcelorMittal has done what was required to satisfy the eligibility criteria."

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Posted By : Sanju Moirangthem on Fri, 02 Nov 2018
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