Essar steel's lenders have deferred the meeting that was scheduled for today due to ineligibility criteria of both players that have submitted the bids reports Ritu Singh of CNBC-TV18, adding that no new date has been set for the committee of creditors to meet of as of now.
On Feb 12, only two bids were submitted by ArcelorMittal and Numetal Consortium.
The meeting is crucial because the bids have yet to be seen by bankers and the insolvency professional are seeking the lawyers’ advice and determining if the bids will be eligible.
To strengthen their bids, Arcelor Mittal which had a stake in Uttam Galva has exited it completely since it was a non-performing asset and now it has tied-up with Nippon Steel in China. Meanwhile, Numetal is ready to go without Rewant Ruia (son of Essar Group promoter Ravi Ruia) if that is was is needed to strengthen their bid.
The interim resolution professional (IRP) has been unable to take a decision because of all these changes.
Essar only has time till April 29 to decide and close a resolution. In case both the bids are rejected and rebidding happens, then it would put lenders in the top spot.
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