Russia's VTB Group continues to be interested in Essar Steel

Russia's VTB Group said Friday it intents to pursue investing in Essar Steel for which its backed Numetal is locked in a bitter contest with the world's largest steel producer ArcelorMittal.

VTB Group head Andrei Kostin said the firm continues to be "interested" in Essar Steel.

"Our goal remains the same. Yesterday, the Supreme Court made certain decisions, lawyers are now studying (them). Depending on the decision we will determine our future strategy and tactics. The finalisation of the transaction depends on the decision of the Indian courts, so this saga will continue for some time," he told reporters here.

The Supreme Court had on Thursday granted one more opportunity to ArcelorMittal and VTB Group-backed NuMetal to bid for Essar Steel, provided they clear bank outstanding of their associated delinquent firms.

Initially, Numetal offered Rs 37,000 crore to buy out Essar Steel. This amount was higher than ArcelorMittal's first round of offer. Later, ArcelorMittal revised the bid to Rs 42,000 crore, which Numetal said it was willing to match.

The Supreme Court however on Thursday held that ArcelorMittal India Pvt Ltd and NuMetal Ltd were ineligible to file resolution plans for corporate debtor Essar Steel -- which had NPAs or bad debts amounting to Rs 45,000 crore -- as per the criteria laid down in the amended Insolvency and Bankruptcy Code (IBC).

To become eligible, they have to clear loans defaulted by their associate firms.