Insolvency resolution: Bidding for Monnet Ispat delayed again

Bidders seek clarity on tax tangle

The financial bidding for Monnet Ispat, the first of the stressed steel companies to go on sale, has been put on hold for a second time as bidders sought clarity on income tax (I-T) liabilities. The bids were due on Monday. 

The bidders are worried that the I-T department would levy a tax on the haircut and interest foregone by the lenders on these assets once a new owner takes over the company, said a source. “The bidders sought clarity on the tax tangle to make their own calculations to ascribe a value to the assets,” said a banker. The bidding