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Renaissance Steel India on Monday said it will file an application before the Kolkata bench of the National Company Law Tribunal (NCLT), challenging the decision of the Committee of Creditors (CoC) that Vedanta and Tata Steel are eligible bidders for Electrosteel Steels.
“We will be filing an application challenging the CoC’s decision to consider Vedanta and Tata as eligible bidders,” said advocate Ratnanko Banerjee, the counsel for Renaissance.
Abhishek Dalmia-led Renaissance Steel, one of resolution applicants for Electrosteel Steels, had earlier said Vedanta and Tata were not eligible to bid as per Section 29A of the Insolvency and Bankruptcy Code (IBC) since there were allegations of criminal offences that are punishable with two or more years in jail.
The Resolution Professional (RP) submitted Vedanta’s resolution plan, already approved by the CoC, before the tribunal. The RP has also filed the progress report.
The CoC had considered Vedanta and Tata Steel as ‘eligible bidders’ for the insolvent steel maker.
The next hearing is scheduled on April 4, when Renaissance’s application will also be heard by the bench comprising Justice Jinan KR and Justice Madan Balachandra Gosavi.
The 270-day period for Electrosteel ends on April 17. The Kolkata bench of NCLT had, on March 20, directed the RP to place all the objections of Renaissance Steel against its two rival bidders before the CoC for an ‘independent consideration’ of the committee.
Anil Agarwal-owned Vedanta had informed stock exchanges that it was declared as the “successful resolution applicant” under the insolvency process and had received a Letter of Intent (LoI). The company said it had accepted the terms of LoI. “The closure of the transaction will be subject to compliance with applicable regulatory requirements and as per the terms approved by the National Company Law Tribunal,” the company said in a notification to the bourses.
Ferro Alloys liquidation
The CoC for Ferro Alloys Corporations Ltd (FACOR), on Monday, informed the Kolkata bench of NCLT that it has rejected all bids for the company.
With the 270-day time limit for corporate insolvency process closed today (April 2), FACOR is likely to go for liquidation.
The company was referred to the corporate insolvency resolution process in June 2017 on account of default of Facor Power to the tune of ₹750 crore.
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