Largest public sector Lender State Bank of India on Friday withdrawn the process of selling debt of Essar Steel NSE 0.00% to asset reconstruction companies (ARCs) after NCLAT’s verdict asking the lenders of the debt-ridden firm to consider the second round bid of Numetal and mining baron Anil Agarwal-led Vedanta.
The National Company Law Appellate Tribunal (NCLAT) in its verdict said that Numetal’s Rs.37000 crore bid for Essar steel is valid and asked the other bidder, ArcelorMittal, to clear dues related to two companies — Uttam Galva and KSS Petron— within three days to remain in the race for the insolvency-hit company.
Reportedly, the lead lender SBI was planning to sell its loan to Essar steel to ARCs. But, in a statement released, SBI said, "In view of the NCLAT order pronounced today, we withdraw the process of sale of debt of Essar Steel India and will proceed as per the order of the NCLAT.”
Essar Steel owes over Rs 45,000 crore to over 30 banks and other creditors, where SBI's alone exposure to the defaulting company is over Rs 13,000 crore.
NCLAT in its verdict also said that lenders are allowed to further negotiate bids for Essar and decide expeditiously.