Ripples Advisory, Essar Steel: Lenders’ call on new round of bidding this week
May get back more than ₹48,000 crore defaulted by firm
Essar Steel’s Committee of Creditors (CoC) is veering towards inviting fresh bids for the stressed asset, paving the way for JSW Steel, Vedanta, Tata Steel, ArcelorMittal and Numetal to make another attempt to acquire it.
The lenders have sought legal opinion on calling for fresh bids. A final decision will be taken later this week as not all bankers favour going through the process again.
If the lenders agree, this will be the third round of bidding for Essar Steel. The second round was scrapped by the National Company Law Tribunal (NCLT) last Friday after it hauled up the lenders and the Resolution Professional for not doing a thorough job in handling the bidding process.
Twists and turns
Bids put in by Numetal and ArcelorMittal were initially rejected on the grounds that they did not meet the eligibility criteria under Section 29. Then a second round of bids was invited, but by then both bidders were questioning the scrapping of the first round of bidding.
The issue got complicated further after JSW Steel entered the fray in partnership with Numetal in the second round, and Vedanta submitted a bid on its own. The NCLT’s decision last week to scrap the second round of bidding meant that JSW and Vedanta could not be bidders any longer.
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