Essar is opposed to Arcelor's bid for loans to loan defaulters

MUMBAI: Essar Steel Promoters Have Resisted ArcelorMittal Attempts To Buy The Trigger Metal Maker By Reporting Tuesday To The Court Of Appeal That The Shareholder Of The Luxembourg Company Lakshmi Mittal Had" Essential Facts Suppressed" Regarding His Business Association With Loose Businesses Run By His Brothers.

The Petitioners Quoted A Sworn Statement Dated October 17, 2018 On Behalf Of Mittal Stating That The Steel Magnate Has Not Had Any Business Contacts With His Two Brothers And Sisters In The Last 20 Years. At The Same Time, They Also Referred To Documents Showing That On September 30, 2018, Mittal, Together With His Brothers In Gontermann Piepers, GPI Textiles And Balasore Alloys, Was A Co-promoter Of Non-performing Assets (NPAs). Against This Background, The Essar Steel Promoters Sought The Rejection Of Arcelor's Proposal For Essar Steel As Bankruptcy Rules Bar Promoters Or Defaulting Companies From Bidding For Stressed Assets.

The National Company Law Appellate Tribunal (NCLAT) Arcelor To Respond To The Complaint And Fixed May 13 As The Next Date For Hearing The Matter.

The Petitioners Said That Mittal Had Sold His Shares In Navoday Consultants (which In Turn Held A Stake In The Three NPAs) Between October 1, 2018 And December 12, 2018 And Stopped Showing Himself As A Promoter Of Navoday, Thus Hiding The Fact. Reacting To Development, Arcelor Said," This Is The Latest In A Long Line Of Frivolous Attempts By Defaulting Promoters Of Essar Steel To Distract From The Central Fact That Indian Lenders Have Declared Arcelor As The Most Credible Owner Of Essar Steel."

Arcelor has stated on numerous occasions that there is absolutely no business connection between Mittal and his brothers, the statement added. "The latest allegations of Essar Steel promoters are yet another attempt to subvert the directions of the Supreme Court and the Bankruptcy code, critical government legislation.

Their Assertions Are Irrelevant, Misleading And Will Be Rebutted In The Strongest Possible Terms."