ArcelorMittal on Tuesday said it was eligible under the Insolvency & Bankruptcy Code to bid for Essar Steel as it was not a promoter of Uttam Galva and KSS Petron, and had already offloaded its shares before submission of the bids.
Arguing before the National Company Law Appellate Tribunal (NCLAT) on behalf of ArcelorMittal, senior advocate Harish Salve submitted that its eligibility should be judged as on the date of submission of the resolution plan for Essar Steel. “ArcelorMittal is not a shareholder in Uttam Galva as on February 7 and on February 9 it was not a shareholder of KSS Petron… We have (ArcelorMittal) submitted bid on February 12,” said Salve.
He added that ArcelorMittal never had any management control in Uttam Galva. “ArcelorMittal never exercised any of the rights under the shareholders agreement, never appointed any directors to the board of Uttam Galva and never involved itself in the management and policy decisions of Uttam Galva,” Salve said.
Source: Business Standards, July 11, 2018