Essar Steel lenders to seek more time for resolution

The Committee of Creditors of Essar Steel will soon seek more time for finding a suitor as the 30-day extension of deadline provided by the National Company Law Tribunal is now extended to May 29.

Delivering its order on the eligibility of ArcelorMittal and Numetal Mauritius last month, NCLT decided to exclude the period between March 20 to April 19 from the 270-day period available to the resolution professional and the lenders under the Insolvency and Bankruptcy Code. Following this, the deadline, which would have ended on April 29, now stands deferred May 29. With Essar Steel resolution process is now mired in web of controversies and complications, the CoC will request the Resolution Professional to move the NCLT to seek another 30-day extension, said banking sources.

The CoC has already given five days time for both Numetal Mauritius and ArcelorMittal to clear their outstanding dues before making them eligible for Essar Steel bid.

While ArcelorMittal has said it is willing to consider payment of Uttam Galva and KSS Petron debt as ‘goodwill gesture’, Numetal has denied any obligation to pay dues.

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