Electrosteel's RP submits Vedanta resolution plan

Electrosteel Steels' resolution professional (RP) on Monday submitted Vedanta's resolution plan before the Kolkata bench of National Company Law Tribunal for final disposal after lenders declared it as "successful resolution applicant".

However, Renaissance Steel, one of the resolution applicants, was opposing the Committee of Creditors' (COC) decision in respect to eligibility of its rival bidders, Vedanta Ltd and Tata Steel.

A counsel, appearing for Renaissance, said: "We are opposing the CoC's decision on eligibility of Vedanta and Tata. We also opposed the resolution plan (of Vedanta)."

Following a direction from the Tribunal, the CoC to the insolvent steel producer had decided to go ahead with Vedanta, rejecting objections raised by Renaissance Steel.

On March 31, Vedanta informed stock exchanges that it was declared "successful resolution applicant" under the insolvency process and had received the Letter of Intent (LoI). The company also said it had accepted the terms of the LoI.

Next hearing before the Tribunal was scheduled on April 4.

The Tribunal on March 20 directed the RP of the debt laden company to place all the objections of Renaissance Steel against the eligibility of Vedanta and Tata Steel to bid for the insolvent company before the Committee of Creditors (CoC) for an "independent consideration" of the committee.

Abhishek Dalmia-led Renaissance Steel had alleged that its two rival bidders were not eligible to bid for the insolvent steel maker as per the Section 29A of the Insolvency and Bankruptcy Code (IBC).

--IANS

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