Bids by ArcelorMittal and a consortium led by Russia’s VTB Group for acquiring debt-laden Essar Steel are said to have been recommended for rejection by the adviser evaluating the offers, sources privy to the development said.
They said legal and financial consultants, advising the interim resolution professional (IRP) overseeing sale of Essar Steel, have recommended rejection of ArcelorMittal’s bid on the grounds that it held stake in Uttam Galva Steel Ltd. — a delinquent borrower.
The bid by VTB-led special purpose investment vehicle, Numetal, has been proposed to be considered ineligible due to it being 25% owned by Rewant Ruia, the son of Essar Steel founder Ravi Ruia.
The IRP is yet to take a call on the disqualification of the two firms, which were the only entities to have put in bids last week.
While neither the IRP nor the advisers could be immediately reached for comments, a Numetal spokesperson said: “We have not received any such information from the resolution professional or his legal advisers.
