Essar Steel auction: Ahmedabad bench of NCLT calls hearing on April 4

After listening to lawyers representing Numetal, ArcelorMittal and Essar Steel’s lenders, the Ahmedabad bench of National Company Law Tribunal (NCLT) has called for another hearing on April 4.

The bench has asked all the three parties for additional documents and has also required them to file affidavits.

Numetal and ArcelorMittal had moved the NCLT as the resolution professional and lenders of Essar Steel had turned down their bids for the troubled steelmaker. Their bids were termed ineligible.

Interestingly, the resolution professional and Committee of Creditors had called for a second round of bidding and set the deadline at April 2.

“The court has acknowledged this, and has asked the resolution professional not to take any decision on the bids until the final hearing on April 4,” an executive told Moneycontrol.

Bids by the two companies were termed ineligible because of the amendment to the Insolvency and Bankruptcy Code, that prevented promoters of defaulting companies from bidding for stressed assets.

While ArcelorMittal was a promoter in Uttam Galva, Numetal’s Rewant Ruia belongs to the Ruia family that had founded Essar Steel.

ArcelorMittal has meanwhile got a clearance from the SEBI and exchanges to be de-classified as Uttam Galva’s promoters.moneycontrol

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