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NuMetal a shell firm & ineligible for Essar Steel bid - ArcelorMittal to SC

Steel News - Published on Fri, 14 Sep 2018

Image Source: devdiscourse.com
Press Trust of India reported that ArcelorMittal on Thursday told the Supreme Court that its rival bidder NuMetal was not eligible to bid for Essar Steel on several grounds, including that it was a shell company created by a firm in which Essar group promoters had majority shares. ArcelorMittal raised various objections before a bench of Justices R F Nariman and Indu Malhotra regarding the eligibility of NuMetal to bid for the debt-ridden Essar Steel and alleged that Arora Enterprises Ltd (AEL), whose majority shares were with Rewant Ruia, had created Numetal. Continuing his arguments, senior advocate Harish Salve, appearing for ArcelorMittal, referred to the Insolvency and Bankruptcy Code and alleged that Rewant Ruia, a relative of the Essar Promoters, had exited from NuMetal to circumvent the eligibility criteria to bid for Essar Steel, against whom bad loans had swelled to the tune of INR 500 billion.

NuMetal, a consortium of Russia's VTB-JSW, has also filed an appeal challenging the National Company Law Appellate Tribunal (NCLAT) order allowing ArcelorMittal to take part in the bid and alleged that the firm stood disqualified due non-deposition of the money.

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Posted By : Nanda Koijam on Fri, 14 Sep 2018
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