RBI's new rules on NPAs: Foreign firms' interest in auction of assets wanes

Complex legalities and short timelines push these companies away from bidding process

Distressed assets up for grabs through the Insolvency and Banking Code (IBC) have captured the attention of a host of parties, including large business houses, multinational corporations, private equity players, and even senior employees of some companies.

Essar Steel has drawn bids from Luxembourg’s ArcelorMittal and Numetal, a company in which Russia’s VTB Bank holds a majority stake, and in which the Essar promoters have a minority role. But most foreign players have dropped out of other bankruptcy bids, leaving domestic companies in the race.

The expression of interest phase saw a number of bidders from across geographies. For the stressed assets