The ArcelorMittal Group, which has bought out the loans of KSS Petron Pvt Ltd, now holds all the cards in the company’s bankruptcy proceedings.
The KSS Petron resolution professional (RP) told the Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday that the UK-based steel major now owns 99.76% voting rights in the company. Accordingly, the committee of creditors (CoC) led by ArcelorMittal will decide on the revival plan submitted by Mauritius-based Royal Investment Partners.
“After paying the financial lenders of KSS Petron, ArcelorMittal now owns 99.76% voting rights in KSS Petron," advocate Jitendra Kumar, appearing for the KSS Petron resolution professional, informed the bench.
“The development came after the Supreme Court order of 4 October when the apex court had asked the company to pay dues for Uttam Galva Steel and KSS Petron to be eligible to bid for Essar Steel," said Kumar.
There were two resolution applications to revive KSS Petron, according to a person familiar with the development.
The CoC, which has rejected one of them on technical grounds, will decide on the resolution plan of little-known Royal Investment Partners on 28 January, the person mentioned above said on condition of anonymity.
“Because of the shift of lenders after ArcelorMittal acquired the entire debt of the company, we want to know what happens to the Section 10 petition in such a case," observed the presiding officer M.K. Shrawat and asked parties to submit their views on it. The tribunal will hear the matter on 7 February. Section 10 filing refers to a bankruptcy petition filed by the debt-laden company itself.
ArcelorMittal India Pvt. Ltd, which is vying for Essar Steel Ltd and which once owned shares in loan defaulter Uttam Galva and KSS Petron, has deposited ₹7,000 crore, including ₹1,647 crore for KSS Petron, to qualify for the bidding.
KSS Petron is an engineering, procurement and construction company largely dealing in oil and gas, infrastructure, and the industrial sector, according to the company’s website.
Earlier, on 1 January, NCLT had granted KSS Petron exclusion of 38 days from the time lost in the corporate insolvency resolution process (CIRP) from 31 December 2018.
ArcelorMittal declined to respond to a query. Mohan Lal Jain, the resolution professional of KSS Petron, confirmed the date of the CoC meeting but refused to divulge details. A Royal Investment Partners spokesperson said the company cannot disclose any information as its resolution plan is under discussion in the CoC.