Numetal moves NCLT to seek declaration over bid eligibility

Apprehending that lenders may not consider its resolution plan for Essar Steel, Numetal today said it has approached the NCLT seeking a declaration for eligibility to submit the plan for debt-laden steel company.

"Numetal Limited (Numetal) filed an application on March 20, 2018 before the NCLT, Ahmedabad (NCLT) seeking a declaration that Numetal is eligible to submit a resolution plan for Essar Steel India Limited (ESIL)," the company said in a statement issued today.

Numetal led by VTB Capital of Russia is one of the bidders for Essar Steel. Another bid has been submitted by Luxembourg-based ArcelorMittal. The last day to submit the bids was February 12, 2018.

"Numetal apprehends that full facts submitted by Numetal for determination of its eligibility to submit a resolution plan have not been appropriately assessed," the statement said.

It stressed that the application was necessitated as there is some apprehension that its resolution plan may not be considered properly by the Committee of Creditors (CoC).

Accordingly, in the application, the company said that all necessary facts for determining the eligibility of Numetal have been placed before the NCLT for an objective assessment.

"The NCLT, on hearing the counsel appearing for Numetal, has issued a notice to the COC through the Resolution Professional (RP)," it said.

The National Company Law Tribunal (NCLT) also observed that any decision taken or resolution passed by the COC in the meeting on March 21, 2018 would be subject to the outcome of the application, it added.

"The next date of hearing of the application is April 4, 2018, as per the Attendance-Cum- Order sheet of the hearing of Ahmedabad Bench of NCLT," it said.