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Row over Essar Steel: Russia's VTB Bank moves SC for clarification

Press Trust of India  |  New Delhi 

Russia's Friday moved the seeking clarification of its October 4 verdict by which and NuMetal were granted another opportunity to bid for

has recently indicated that it was likely to bid alone for the debt-ridden

A lawyer, who is in the know how of the development, confirmed that has moved the top court seeking clarification of the verdict.

A bench of justices R F and had said that and VTB Bank-promoted NuMetal can bid for Essar Steel, provided the two pay off the non-performing assets (NPAs) of their related corporate debtors within two weeks from October 4.

It, however, had held that India Pvt Ltd and were ineligible to file resolution plans for corporate debtor -- 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).

As per the verdict, ArcelorMittal will qualify to bid for Essar Steel only if it clears the Rs 7,000 crore dues of two firms, and KSS Petron, it was previously associated with.

With regard to NuMetal, the court had held that it was a shell company of promoter and can only become eligible after of the NPAs of the group firms.

The court, however, had not specified NPAs of NuMetal's related corporate debtors which have to be paid off to become eligible to bid for corporate debtors Essar Steel.

Earlier, both the firms had moved the apex court against the decision of which had ruled that NuMetal's second bid for Essar Steel was eligible, but the same by ArcelorMittal would qualify only if it cleared the Rs 7,000 crore dues of two firms it was previously associated with.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 12 2018. 21:25 IST