BB: NCLAT gives conditional nod to ArcelorMittal’s resolution plan for Essar Steel

18 March 2019: The National Company Law Appellate Tribunal today gave a conditional nod to ArcelorMittal’s resolution plan for debt-ridden Essar Steel.

Stating that there was no stay on the ArcelorMittal’s resolution plan, the Appellate Tribunal directed for the constitution of a Monitoring Committee to “ensure that Essar Steel remains a going concern”.

The Committee would be headed by the Resolution Professional who would implement ArcelorMittal’s Resolution Plan in accordance with law.

The implementation is, however, subject to the final outcome of the proceedings before the Appellate Tribunal, it was clarified.

The order was passed by a two-member Bench of the Appellate Tribunal, headed by Chairperson Justice SJ Mukhopadhaya while hearing a batch of appeals moved against the approval of ArcelorMittal’s resolution plan for Essar Steel.

Apart from allowing the Resolution Professional to disperse the amount promised in the Rs. 42,000 Resolution Plan, the Appellate Tribunal today also directed the Insolvency and Bankruptcy Board of India to file an affidavit stating the average payment received by a corporate debtor’s financial and operational creditors in a corporate insolvency resolution process.

The Appellate Tribunal also directed Standard Chartered, one of the appellants against ArcelorMittal’s resolution plan, to establish if it was entitled to the amount being claimed by it from Essar Steel, given that Essar Steel was only a guarantor and not the principal debtor.

They (Essar Steel) had given a guarantee.. Have they (Standard Chartered) invoked the guarantee prior to the moratorium? .. Are you (Standard Chartered) entitled to any amount? You (Standard Chartered) are either entitled to no amount or equal amount.

It has further directed the counsel appearing in the case to assist the Appellate Tribunal on whether creditors could be categorized into related and unrelated creditors. Standard Chartered Bank, has challenged that March 8 order of the National Company Law Tribunal Ahmedabad Bench approving ArcelorMittal’s resolution plan for Essar Steel, on the ground that the approval process adopted by the Committee of Creditors was illegal and that the plan was discriminatory.

The three erstwhile Directors of Essar Steel, Prashant Ruia, Dilip Oommen, and Rajiv Bhatnagar, have also moved the Appellate Tribunal against the approval of ArcelorMittal’s resolution plan.

Some of the operational creditors, including Surat-based Vinayak Road Carriers, have also moved intervention applications in the appeal. In its application filed through Advocate Anand Varma, Vinayak Road Carriers has also assailed the approval granted to ArcelorMittal’s resolution plan while seeking full payment of its dues.

The matter would be next heard on March 27.

The Bar & Bench reported

TOI: Anil Ambani averts jail, RCom pays Rs 462 crore dues to Ericsson, shares end at all-time low

18 March 2019: Anil Ambani, the Chairman of Reliance Communications (RCom), has averted the three-month jail-term as the telecom company has reportedly cleared the dues with Swedish telecom equipment manufacturer Ericsson.

Anil Ambani-controlled Reliance Communications has paid the dues of Rs 462 crore to Ericsson today as March 19, 2019, was the last date for the payment, ET reported citing unnamed Ericsson lawyer.

The dues paid by Reliance Communications to Ericsson also include penalty interest.

Earlier last month, the Supreme Court held Anil Ambani guilty in contempt of court, observing a wilful default, for not clearing the dues to Ericsson and the apex court has said if RCom fails to pay the dues to Ericsson within four weeks then RCom Chairman Anil Ambani and Chairpersons of Reliance Infratel and Reliance Telecom will have to serve a jail term.

Reliance Communications shares on Monday, March 18, 2019, crashed as much as 10.22 per cent to a fresh all-time low of Rs 3.95 before settling at a lifetime closing low of Rs 4 on National Stock Exchange (NSE). RCom shares have fallen approximately 34 per cent since March 5, 2019.  

Meanwhile, the state-run telecom firm BSNL will approach National Company Law Tribunal (NCLT) this week to recover dues to the tune of Rs 700 crore from RCom, news agency PTI reported citing unidentified sources.

“BSNL has aready invoked bank guarantee of around Rs 100 crore submitted by RCom for default on payments. Decision was taken on January 4 by BSNL Chairman and Managing Director Anupam Shrivastava to start legal proceedings against RCom for recovery of dues of around Rs 700 crore,” PTI said in a report mentioning anonymous sources.

The Times of India reported

BQ: Hotel Leelaventure To Sell Five Properties To Brookfield For Rs 3,950 Crore

18 March 2019: Thirty three years ago Hotel Leela Venture Ltd. opened its first hotel in Mumbai. Now that’s all the insolvent company will be left with after it completes the sale of prime properties to Brookfield Asset Management.

The company will sell four Leela hotels in Bengaluru, Chennai, Delhi and Udaipur to a Brookfield-sponsored private real estate fund, according to a stock exchange filing. The deal includes another property it owns in Agra. The transaction also includes all assets and liabilities related to the properties, and all hotel management contracts currently in operation as well as contracts for hotels currently under development.

Hotel Leela said the proceeds from the slump sale of assets will help repay borrowings from banks and financial institutions. The company’s debt, according to its annual report for 2017-18, stood at nearly Rs 3,800 crore. The deal is expected to be completed in three to six months, subject to shareholder and regulatory approvals.

Hotel Leelaventure runs a chain of hotels and resorts, with nine properties it owns or manages across India. The company had restructured debt under the Corporate Debt Restructuring mechanism in September 2012. In June 2014, its erstwhile lenders, with over 95 percent of the hotel operator’s debt, assigned their debt to JM Financial Asset Reconstruction Company, and one lender with exposure of about 1 percent.

Last month, JM Financial filed an insolvency petition against Hotel Leela Venture with the Mumbai bench of the National Company Law Tribunal. Hotel Leela had been looking at various options to repay debt including sale of non-core assets, hotels, equity infusion and even debt refinancing.

JM Financial will act as an exclusive financial adviser to the deal will Brookfield, the statement said.

It is a significant part of its business that Hotel Leela is letting go of. In 2017-18, the four hotels it is selling contributed nearly 80 percent of its total income. The hotels—which also include the luxurious Leela Palace in Udaipur—accounted for 88 percent of the company’s total net worth.

Founded in 1983 by Captain CP Krishnan Nair, at the age of 65, Hotel Leelaventure went on to become one of India’s top luxury hotel chains. Nair, originally a textile entrepreneur, named both businesses after his wife, Leela. The Mumbai property, the first suburban luxury hotel in the city, was followed by a luxury beach resort in Goa and then Bengaluru, Kovalam, Gurugram, Udaipur, New Delhi and Chennai.

In 2014 Captain Nair died. By then his son Vivek Nair had taken over as chairman and managing director. That was also the year the group’s troubles peaked – mostly because of high debt incurred to expand operations and room oversupply on account of a slow economic recovery after the global financial crisis of 2009. The hotel chain was unable to recover from that, at first selling a few properties before this final deal with Brookfield. After which the company will continue to operate the hotel in Mumbai and own certain land in Hyderabad and the joint development project of residential apartments with Prestige Developers in Bangalore.

Brookfield will have a right of first refusal over the Mumbai hotel, in case that’s ever put up for sale.

Hotel Leelaventure shares, that traded close to Rs 60 a piece in 2010, closed at Rs 11 at the end of trade on Monday (March 18).

The Bloomberg Quint reported

ET: NCLAT allows implementation of ArcelorMittal’s resolution plan for Essar Steel

18 March 2019: In a big win for ArcelorMittal, National Company Law Appellate Tribunal (NCLAT) today gave a conditional approval to ArcelorMittal’s Rs 42,000 crore resolution plan for Essar Steel sale, subject to final order. However according to some reports, Essar may challenge the order in the Supreme Court. 

“The resolution professional will be the chairperson of the monitoring committee and will act in accordance with law to ensure that the company is a going concern,” the tribunal said. 

The appellate tribunal also said it will also look into the issue of discriminatory distribution of the funds between financial and operational creditors. 

National Company Law Appellate Tribunal on Friday had refused to stay National Company Law Tribunal’s (NCLT) Ahmedabad bench order approving steel giant ArcelorMittal’s Rs 42,000 crore takeover bid for Essar Steel and sought a fresh plan for the distribution of bid amount between financial and operational creditors of the debt-laden firm. 

NCLAT two-judge bench had earlier asked creditors to consider giving operational creditors 10 per cent of the total proceeds, up from 5 per cent considered in the agreed plan. The bench also asked lenders to consider giving Standard Chartered more of the dues than what is proposed now, suggesting a pro rata formula be applied for all financial creditors. 

Four creditors with the largest exposures, namely Edelweiss ARC, State Bank of India, IDBI Bank and ICICI Bank, are part of the core committee that is taking the call on the behalf of lenders as the committee of creditors (CoC) has been technically dissolved after a decision to award the bid to ArcelorMittal was taken. 

Essar Steel directors had challenged Ahmedabad-bench of NCLT nod to global steel giant ArcelorMittal’s bid for the debt-laden company on the plea that their offer of Rs 54,389-crore was superior as it clears 100 per cent outstanding of both financial and operational creditors. 

Standard Chartered too moved the NCLAT against the plan as its counsel contended that the bank was being given only 1.7 per cent of its total dues from Essar Steel while other financial creditors, forming part of the CoC, were getting over 85 per cent of their dues. 

ArcelorMittal’s Resolution Proposal involves financial creditors getting Rs 41,987 crore out of their total dues of Rs 49,395 crore. Operational creditors, under the plan, would get just Rs 214 crore against the outstanding of Rs 4,976 crore. 

Accroding to ArcelorMittal plan, Standard Chartered will only get Rs 60 crore against its claims of Rs 3,187 crore from Essar Steel. 

On Thursday, the appellate tribunal had told Essar Steel Asia Holdings (ESAH) that its Rs 54,389-crore resolution plan would only be considered only if the entity cleared the Essar’s entire bad debt of Rs 1.4 lakh crore. 

The Economic Times reported

MC: All eyes on Naresh Goyal, as his deadline to Jet Airways’ pilots expires today

18 March 2019: Amid grounding of operations at Abu Dhabi airport, an unhappy partner in Etihad Airways and increasing unease among its pilots, all eyes are on Jet Airways’ founder and Chairman Naresh Goyal as his self-imposed deadline to announce an update on the resolution plan gets over on March 18.

Patience is running out among the distressed airline’s senior pilots, many of whom have been approached by IndiGo and GoAir. Some of them attended ‘roadshows’ conducted by IndiGo last week in Gurugram and Mumbai and may decide on their future course depending on what Goyal has to tell them.

“Tempers have gone up after an aircraft maintenance engineer lost his son for want of funds,” said a senior executive.

Jet Airways’ pilots and engineers have not been paid part of their December salary, and those of January and February.

On March 1, Goyal had written to the airline’s pilots, appealing for ‘continued support’ and assured them that the senior management will provide an update on the resolution plan by March 18.

“While a few steps remain, some critical steps are behind us and the remaining approval processes are well underway. I assure you that I am personally working this situation as rapidly as possible,” Goyal had said.

But the ‘few steps’ seem to be hard in coming, especially after Jet Airways grounded its operations in Abu Dhabi, which is the home base of Etihad Airways. Jet Airways’ hub in Abu Dhabi is critical to feed Etihad’s flights to Europe.

The Middle East airline continues to stick to its demands, including capping of Goyal’s stake in Jet Airways and exemption from opting for an open offer in case it decides to invest more money in the Indian airline, thus increasing its stake.

While Goyal holds 51 percent stake in the airline, Etihad has 24 percent.

Post the resolution plan, banks are expected to take control of the airline, which has a debt of over Rs 8,000 crore.

The NCLT deadline

Goyal has to be mindful of the 90-day deadline from the date of his first default on loan repayments on December 31, 2018. Lenders can take a defaulting company to National Company Law Tribunal (NCLT) after 90 days of default.

On March 11, Jet had defaulted again, this time on an external commercial borrowing.

State Bank of India, the lead lender, has till now maintained that it is not considering the NCLT route to recover its loans. A senior SBI official had said that the resolution is likely within a week.

“It is by desire that this airline keeps running, that is the fundamental difference between this and other non-performing assets. We are hopeful of arriving at a resolution in one week,” the official said.

Pilots angry

Jet Airways’ pilots have been offered ‘impressive’ salary terms from IndiGo and GoAir. Both airlines have promised these pilots compensation for their salary arrears and a base of their choice.

Most pilots have been put on standby as Jet Airways has grounded over 50 of its aircraft after failing to pay its lessors. Also, the airline has shut down stations and curtailed its operations leading to lower flying hours for its pilots.

“Many of these pilots now are sitting on offers. But haven’t taken a decision as they are waiting to hear from Goyal,” a senior executive said.

The death of a colleague’s son hasn’t helped. Moneycontrol had reached out to the aircraft maintenance engineer, who had requested the Jet Airways’ management to release his salary, so that he could have his son operated. He replied saying that his son has passed away and he didn’t want to discuss the issue.

Moneycontrol reported

BS: Lenders may re-evaluate Sterling Biotech’s one-time settlement plan

18 March 2019: Lenders to Sterling Biotech are seeking legal views on whether they can withdraw their decision to clear the one-time settlement plan for the stressed asset after getting a rap from the National Company Law Tribunal (NCLT) for accepting the offer from promoters who have fled the country.

Sterling Biotech owes close to Rs 8,100 crore to the banks and the offer — made by the promoter Sandesara family under Section 12A of the Insolvency and Bankruptcy Code (IBC) — entailed 65 per cent haircut for the banks.
After accepting the offer on March 8, the lenders had made an application to the Mumbai Bench of the NCLT, seeking to withdraw IBC proceedings against the company.
The NCLT said since authorities like the Central Bureau of Investigation and the Enforcement Directorate are searching for the promoters, the tribunal would have to take their views before giving any order. The NCLT has also sought views from the Reserve Bank of India, the Securities and Exchange Board of India and the Serious Fraud Investigation Office.
The NCLT will hear the case again on March 26.
“The recovery in the case of Sterling Biotech is far better than Alok Industries, where the haircut was as high as 85 per cent,” said a banker close to the development. Haircut is the amount bankers let go from the dues of a defaulter to settle the account.

According to IBC rules, the banks offer the company to the highest bidder to get their dues. But in the case of Sterling Biotech, 90 per cent of the lenders agreed to the offer made by the promoters so as to get their dues back before March end.

The company’s auditor report said as of December 31, 2018, the company was carrying loans, borrowings and external commercial borrowings of Rs 7,845.94 crore from various banks, financial institutions, preference share capital and other parties. Post IBC, financial creditors made claims of Rs 15,013 crore. The resolution professional admitted claims worth Rs 9,035 crore up to February 5, 2019.

The report said during the period ended December 2018, the company had deferred tax asset of Rs 2,161 crore. “In the absence of reasonable certainty on realisation of this asset against future taxable profits of the company, we are unable to comment on the carrying value of this asset in the statement,” the auditor said, adding that the management has provided for impairment of various assets for Rs 4,42,9.95 crore under exceptional items in the accounts statement.

The Business Standard reported

TIE: Sterling miffs Enforcement Directorate

18 March 2019: Two days after the National Company Law Tribunal (NCLT) quashed the settlement plan proposed by promoters of Sterling Biotech Ltd (SBL), investigative agencies have planned to oppose the move. They are planning to file their written submission against the proposal and probe the negotiation deal.

Sandesaras, the Sterling Biotech promoters, had offered a one-time settlement of dues to the consortium of banks led by Andhra Bank.

“We are aware of the developments. The agency is certainly going to appeal against the decision. We are going to make our representation and will give a written submission ahead of the next hearing,” a senior Enforcement Directorate official told TMS.

The total credit facilities to the tune of Rs 8,100 crore availed by the Vadodara-based SBL group were declared “fraud account” by banks. The Central Bureau of Investigation (CBI), Serious Fraud Investigation Office and Enforcement Directorate (ED) are probing the case. The group’s promoters have fled the country.

The CBI had booked Sterling Biotech, its directors Nitin Sandesara, Chetan Sandesara, Dipti Chetan Sandesara and Hiteshkumar Patel, along with  Rajbhushan Omprakash Dixit, Vilas Joshi, chartered accountant Hemant Hathi as well as Andhra Bank former director Anup Garg in connection with the alleged bank fraud case.

Amidst the ongoing probes, Andhra Bank had initiated an insolvency process against the company in June last year.

In January, the ED had initiated the process to extradite the four Sterling Biotech promoters, who is suspected to be in Nigeria and Italy currently.

However, in a sudden development this month, the lenders decided to withdraw the resolution proceedings against the company, and accepted the Sandesara brothers’ one-time settlement offer of Rs 5,500 crore, taking 66 per cent haircut.

“The e-voting on the resolution put to vote at the 14th meeting of the CoC of the Company concluded on Thursday, 07th March 2019… In this regard, please note the Committee of Creditors has approved the withdrawal of the CIRP of the Company with requisite majority,” the company declared in a regulatory filing.

The move by the lenders has really enraged the investigative agencies. The matter has already been informed to the Ministry of Corporate Affairs.

“This is not a plain case of bad loan. This is a case of corruption and money laundering and the lenders cannot go ahead with backdoor dealings with the fugitive promoters, while the agencies are working towards extradition. We are going to investigate the trail,” a senior ED official said.

The National Company Law Tribunal had already refused to accept the settlement plan.

The New Indian Express reported

ET: Jet Airways’ rescue plan runs into rough weather

18 March 2019: The deal to rescue Jet Airways has hit an air pocket. Lenders have told Jet’s strategic partner Etihad Airways that if it is unable to accept the terms to revive the troubled airline, it should exit so that a new investor can be brought in. 

Etihad, saddled with losses and unsure of the resolution plan and its probable outcome, is understood to have said that it could exit at a price of Rs 150 a share. 

“This could well be pressure tactics but it has not gone down well with the government and the National Investment and Infrastructure Fund (NIIF), which was planning to invest. But the question is, where is the buyer even if Etihad offers to sell its stake?” said a person familiar with the developments. 

Etihad owns 24% of Jet, which closed at Rs 234.95 on Friday on the BSE. Bankers and the Etihad management have put forth their views just ahead of a March 18 deadline cited by Jet founder chairman Naresh Goyal to employees for a decisive update on the revival plan. An Etihad team will be coming to Mumbai this week to discuss the matter, which is heading toward breaking point, according to the people cited above. 

Etihad is yet to chip in with the required contribution of Rs 750 crore. Lenders, led by State Bank of India, are ready to infuse a like amount as ‘priority debt’ to keep the airline flying for the next six months. The Abu Dhabi-based carrier is said to have approached the UAE Federal National Council before taking a final decision, said a second person in the know. There was no response from Etihad to ET’s emailed questionnaire till the time of going to press. 

According to aviation industry sources, Goyal has sent feelers to other potential investors, including Etihad’s rival Qatar Airways, which has been trying to gain a foothold in India. 

Qatar Airways had unsuccessfully wooed India’s biggest airline IndiGo for a stake and even announced plans of setting up its own domestic airline in India. However, a senior executive at Qatar Airways denied any talks had taken place and said it won’t be interested in Jet Airways. The latter said it wouldn’t comment “on speculation”. 

Facing the worst financial crisis of its 25-year existence, Jet Airways has grounded about half its fleet, mostly because leases haven’t been paid, cancelled flights, delayed salaries and defaulted on loan and other payments. Goyal wrote to employees on March 1 that the management would provide an update on the revival plan on March 18. He mentioned the situation will be “gently easing up” by then. 

REVIVAL PLAN 


According to the draft memorandum of understanding (MoU), which constitutes the fund infusion plan, Jet’s lenders will convert debt into 114 million shares. The airline has already enhanced its share capital and will, in the next step, issue fresh shares via a rights issue. 

According to the MoU, Etihad will infuse Rs 1,600-1,900 crore for a stake of 24.9%, just below the 25% threshold that triggers an open offer. “Among other things, Etihad is unhappy because after fund infusion and dilution, its stake would be capped below 25% with Sebi (Securities and Exchange Board of India) unwilling to give any exemption from an open offer,” said a banker. “Also, given a choice, it does not want Goyal or his nominees to have a say.” 

Lenders will infuse another Rs 1,000 crore and take a 29.5% stake in Jet. About Rs 450 crore that the carrier owes the founder will be converted into equity. Goyal, who has already infused Rs 250 crore, will end up with a shareholding of about 17.1% and not more than 22%. 

A fresh Indian investor, said to be NIIF, will pick up another 20%. On an immediate basis, lenders will give Rs 750 crore to Jet. A similar amount needs to be raised by Etihad either by itself or a lender. Etihad has refused to comply with this condition. 

The lenders have, according to sources, also refused to accept Etihad’s condition that it should have the right of first refusal if any of them decides to exit Jet. Etihad’s reluctance stems from its own financial position. It has suffered a cumulative loss of about $3 billion in 2017 and 2018 for reasons including soured airline investments in Europe. 

Meanwhile, Goyal has again opposed the condition that his shareholding be capped at 22% “in perpetuity”, ET reported on March 15. Jet had defaulted on loans in December, but is said to have resumed making payments subsequently. 

According to Reserve Bank of India regulations, the first instance of default puts a company on a 90-day deadline, at the end of which lenders take a call on whether to file a case in the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code. 

“A referral to the NCLT would likely finish Jet. We have to understand this is an airline with largely perishable assets and not a steel or cement company whose plants can be shut for months,” said one of the people cited above. Perhaps for this reason Jet has ensured its account turns standard for most of lenders. ET reported on March 14 that Jet had begun making payments in the past two months after missing them in December. However, the dues of operational creditors remain outstanding.

The Economic Times reported

ET: Essar Steel lenders mull options after NCLAT advice

18 March 2019: Creditors to Essar Steel are weighing three options, one of which might be put before an appellate bankruptcy court on Monday, as they seek to draw to a close the insolvency proceedings that have dragged on for about two years. 

The options include asking ArcelorMittal to pay up the whole amount and keep the contentious payments to operational creditors in an escrow account or just comply with the suggestions made by the National Company Law Appellate Tribunal (NCLAT) in the last hearing on Friday. 

“The third option is to stick to our stand that this is the agreed resolution and fight on, assuming further delays. All these options are being debated but there is no consensus as yet,” said a banker with knowledge of the internal discussions. 

Lenders, especially those owned by the state, are under pressure to accept any solution suggested by NCLAT because they are desperate to close the long-pending case before the fiscal year ends . Meeting that deadline will allow them to write back against earlier provisions and escape higher ageingrelated provisions for the account. So, there is an outside chance that operational creditors may get a higher share of their dues than what now stands on paper. 

The two-judge bench had on Friday asked creditors to consider giving operational creditors 10% of the total proceeds, up from 5% considered in the agreed plan. The bench also asked lenders to consider giving Standard Chartered more of the dues than what is proposed now, suggesting a pro rata formula be applied for all financial creditors. 

If lenders agree to both these suggestions, total amount they can expect would drop to Rs 34,000 crore of the Rs 42,000 crore proposed by ArcelorMittal as operational creditors will get Rs 5,000 crore and Standard Chartered will get Rs 3,000 crore, the banker cited above said. 

“Raising the proportion for operational creditors could be considered but accommodating Standard Chartered looks difficult at this stage as it does not have a first charge over the asset,” said another executive involved in the deliberations. 

Standard Chartered was to get just 1.7%, or Rs 60 crore, of its Rs 3,500-crore dues because unlike Indian banks, it had not lent to the parent company but its subsidiary and did not have first charge on its assets. The bank had taken the company’s shares as collateral that hold no value. 

Four creditors with the largest exposures, namely Edelweiss ARC, State Bank of India, IDBI Bank and ICICI Bank, have formed a core committee to take the decision on behalf of lenders as the committee of creditors (CoC) has been technically dissolved after a decision to award the bid to ArcelorMittal was taken.

The Economic Times Reported

LM: Deadline for ACCIL’s bid likely to see extension

18 March 2019:  JSW Steel Ltd has emerged as the sole bidder for Asian Colour Coated Ispat Ltd (ACCIL), forcing the lenders to consider more steps to garner a robust response for selling the assets of the bankrupt downstream steel company.

Sajjan Jindal-led JSW is the only company to have submitted a resolution plan for ACCIL, said two people familiar with the matter. Bidders had until 8 March to submit their offers.

The committee of creditors (CoC) of ACCIL is considering extending the deadline or starting a second round so as to invite more bids, a member of the CoC and one of the two people cited above said.

JSW is believed to have placed a bid in the  800-1,000 crore range, the second person said. ACCIL has outstanding debt of more than  5,000 crore.

“We’re disappointed with the number of bidders and the bid amount,” the second person said.

“Banks are hoping to recover at least half of the outstanding dues through the NCLT (National Company Law Tribunal) process. The CoC will take a decision soon on what the next step shall be.”

ArcelorMittal is likely to show interest in ACCIL if its acquisition of Essar Steel goes through, the first person said.

NCLT Ahmedabad has approved ArcelorMittal’s bid for Essar Steel. This is currently being challenged by the erstwhile promoters of Essar Steel in higher courts.

JM Financial Asset Reconstruction Co. Ltd, which had submitted an expression of interest for ACCIL initially, did not submit a final bid either.

Spokespersons for ArcelorMittal and JSW Steel declined to comment. JM Financial did not respond to emailed queries.

Kuldip Kumar Bassi of KK Bassi and Associates, the resolution professional for ACCIL, did not respond to emailed queries on whether there will be a second round of bidding.

ACCIL was part of the Reserve Bank of India’s second list of 28 defaulters that banks were to refer to insolvency court.

The Live Mint reported