Essar Steel auction: JSW Steel, Vedanta to join the race if NCLT allows fresh bids
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With the National Company Law Tribunal (NCLT) favouring a call for fresh bids for Essar Steel, new suitors in the form of JSW Steel and Vedanta Resources are expected to join the fray.
Both the companies had participated in the second round of bidding for Essar Steel. But in its order last week, the Ahmedabad bench of the NCLT had called the second round invalid.
The Tribunal had instead called for review of first round bids.
date = new Date(); date.setTime(date.getTime()+(1*24*60*60*1000)); $.cookie("dfp_cookie_article", "Y1", {expires: date,path:"/",domain: ".moneycontrol.com"});JSW Steel had shown interest in Essar Steel after bids from Numetal and ArcelorMittal were found to be ineligible by the resolution professional in the first round.
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But Essar Steel's lenders had decided against inviting JSW Steel, as the latter hadn't submitted an expression of interest.
Later, JSW Steel joined the Numetal consortium in the second round of bidding. JSW Steel had invested in Numetal's India unit.
Vedanta Resources, which had submitted an expression of interest, had put in a bid in the second round.
"Yes, we are interested... 200 percent," said an executive from JSW Steel, on the company plans on Essar Steel.
Sources separately added that the Sajjan Jindal-company is likely to write to Essar Steel's lenders, making formal its interest.
Executives close to Vedanta Resources also reiterated that the London-based mining major will be interested in putting in a bid. The Anil Agarwal company has already bagged Electrosteel Steel, which was also referred to the NCLT under the Insolvency and Bankruptcy Code.
A meeting of Committee of Creditors, consisting of Essar Steel's lenders, was slated for Monday, but now has been postponed to Tuesday. The meeting is expected to take a call on the issue.
Two options
In its order last week, the Ahmedabad bench of the NCLT had noted the two options before Essar Steel's resolution professional.
One was to open up the auction for new bids, and the second, to continue with the present process that included ArcelorMittal and Numetal as bidders.
The bench said: "In the option no 1 it has been suggested to initiate a new process to invite bids from all interested parties (starting with new expression of interest) and follow the entire process as per new RFP (request for proposal)... in our humble view such option seems more sound, reasonable and legally transparent..."
Essar Steel's lenders though were more keen on the second option to save time. The resolution process for the steel company has to be completed by April 29.
But that has got a relaxation after the NCLT said that the time taken in legal proceedings could be excluded from the resolution period.本文來源：https://www.moneycontrol.com/news/business/companies/essar-steel-auction-jsw-steel-vedanta-to-join-the-race-if-nclt-allows-fresh-bids-2554605.html