JSW seeking legal opinion for Essar Steel solo bid
JSW Steel was not allowed to bid independently for Essar Steel during the second round of bidding. It instead teamed up with Numetal Mauritius to counter ArcelorMittal
New Delhi: JSW Steel Ltd is seeking a legal opinion if it can bid solo for stressed assets of Essar Steel if fresh bids were allowed, joint managing director Seshagiri Rao said Tuesday. “It depends upon the legal opinion and the view of the CoC (committee of creditors) and the resolution professional (RP). If they take a positive view...then we are open to look at it,” he told reporters in New Delhi. “We are seeking a legal opinion and based on that opinion we will take a call,” he said.
Rao was speaking during the International Conference on Minerals and Metals in New Delhi.
“At that time when the second round of bidding was happening JSW Steel was looking at submitting the bid alone. We were not permitted. So, we have to see what view CoC and RP will take in the light of the Supreme Court judgement,” he said.
The Supreme Court had on 4 October directed Numetal to clear all outstanding dues of not only Essar Steel but also bad debts of over one year of other Essar Group entities to be eligible to bid for the debt-laden steel maker. ArcelorMittal was also allowed by the court to submit revised resolution plans for Essar Steel provided it clears debtor dues within two weeks. ArcelorMittal has to clear ₹ 7,000 crore dues of Uttam Galva Steels and KSS Petron.
The two companies are required to submit their resolution plans in eight weeks thereafter.
JSW Steel had teamed up with NuMetal Mauritius to place a ₹ 37,000 crore offer for Essar Steel in the second round of bidding. NuMetal and ArcelorMittal were the only two parties that bid to buy out Essar Steel in the first round but the resolution professional was advised to reject both the bids owing to their promoters being linked to defaulter companies.