Business Standard reported that JSW Steel has written to the committee of creditors (CoC) of Essar Steel on inviting fresh bids for the bankrupt firm.
This has come ahead of the meeting of the CoC on Tuesday. JSW Steel’s letter mentions that the second round of bids should be rejected by the CoC because Numetal was ineligible and ArcelorMittal would have to pay huge dues. So this process too could end up being time-consuming. On Sunday, JSW told Business Standard that if a fresh round of bids was invited, it planned to go alone.
JSW’s pitch for a fresh round of bids is based on the premise of maximisation of value. JSW Steel told Business Standard on Sunday that if a fresh round of bids was invited by the CoC, the company would go alone.
JSW is also citing a part of the NCLT order, which says “in the option no. 1, it has been suggested to initiate a new process for inviting bids from all interested parties (starting with initiation of new expression of interest) and follow the entire process as per new request for proposal as approved by the CoC, which were not considered as viable and appropriate by the CoC keeping in view of the time constraint, while in our humble view to be more sound reasonable and legally transparent… therefore, we feel while remanding back the matter to the CoC for reconsideration of the resolution plan and resolution applicant, to look at option 1 as per the deliberation made in the CoC meeting dated March 21, 2018…”.
About a month ago, JSW Steel had written to the committee, expressing its interest in taking part in bidding for Essar Steel. However, the CoC had decided not to invite fresh bids owing to time constraints.
Source : Business Standard