News Nation Logo


Essar Steel: Here's the Chronology of insolvency proceedings

PTI | Updated on: 04 Oct 2018, 02:10:18 PM
Essar Steel: Here's the Chronology of insolvency proceedings

New Delhi:

The following is the chronology of events of insolvency proceedings against Essar Steel leading to the Supreme Court on Thursday granting one more opportunity to mining major ArcelorMittal and Russia's VTB Capital-backed NuMetal to bid for the firm after clearing their Non-Performing Asset (NPA) dues in two weeks:

May 5, 2017: Banking Regulation (Amendment) Ordinance takes effect, authorising RBI to proceed with bankruptcy process which allowed banks to act against defaulters.

Jun 27: Insolvency proceedings initiated against Essar Steel in National Company Law Tribunal (NCLT) after RBI identifies 12 accounts for immediate resolution under Insolvency and Bankruptcy Code (IBC).

Jul 4: Essar Steel challenges RBI's decision in Gujarat High Court.

Jul 7: HC restrains NCLT from further proceedings against Essar Steel.

Jul 17: HC dismisses Essar Steel's plea.

Jul 18: Essar Steel seeks time in NCLT Ahmedabad to file objections.

Aug 2: NCLT admits plea for insolvency proceedings against Essar Steel.

Oct 2: Expression of Interests (EOIs) invited for Essar Steel.

Oct 28: Six firms submit EOIs -- ArcelorMittal, Numetal, Nippon & Sumitomo Metal, Tata Steel, Vedanta Group, SAIL.

Nov 23: Section 29A introduced which bars wilful defaulter, defaulter promoters from bidding.

Feb 12, 2018: NuMetal, ArcelorMittal submit bids.

Mar 21: Both bids held ineligible due to NuMetal's connection with Essar Group's Ruias and ArcelorMittal's stake in an NPA account.

Mar 20: Numetal moves NCLT challenging the rejection.

Mar 26: ArcelorMittal challenges disqualification in NCLT.

Apr 2: Second round of bids invited.

Apr 19: NCLT asks Committee of Creditors (CoC) to reconsider first round of bids.

Apr 26: Numetal, ArcelorMittal move National Company Law Appellate Tribunal (NCLAT) against the disqualification of first round of bids.

Sept 7: NCLAT holds Numetal's Rs 37,000 crore in second-round bid valid, asks ArcelorMittal to clear dues of Uttam Galva and KSS Petron, worth Rs 7,000 crore in three days.

Sept 10: ArcelorMittal moves SC against NCLAT order.

Sept 12: ArcelorMittal tells SC it had already divested its shares in Uttam Galva Steel and KSS Petron.

Sept 20: NuMetal tells SC NCLAT wrongly allowed ArcelorMittal to pay dues after bidding.

Sept 27: SC reserves verdict.

Oct 4: SC allows ArcelorMittal, NuMetal to bid for Essar Steel; asks CoC to decide the issue within eight weeks.

Read More | India vs West Indies 1st Test at Rajkot LIVE: Prithvi Shaw departs for 134

For all the Latest Business News, Download News Nation Android and iOS Mobile Apps.

First Published : 04 Oct 2018, 02:10:09 PM