The National Company Law Appellate Tribunal (NCLAT) on Thursday admitted Renaissance Steel’s petition challenging Vedanta’s eligibility to take over bankrupt firm Electrosteel Steels. A NCLAT bench, headed by its chairman Justice SJ Mukhopadhaya, has scheduled the matter for hearing on May 28.
Challenging the National Company Law Tribunal’s order that quashed its objections on Vedanta’s eligibility under section 29 A of the Insolvency and Bankruptcy Code (IBC) and approved Vedanta’s offer, Renaissance Steel moved the appellate tribunal. It was also a contender for Electrosteel Steels. On May 1, NCLAT had directed that status quo be maintained with regard to the implementation of Vedanta’s resolution plan for Electrosteel Steels.
Renaissance earlier submitted that one of Vedanta’s affiliates in Zambia — a unit of its UK-based parent Vedanta Resources — had been found guilty of criminal misconduct punishable with two or more years in jail.
Vedanta had offered to pay `5,320 crore to acquire the bankrupt steelmaker. Of this, `1,805 crore would be used to subscribe to the company’s equity while `3,515 crore would be provided by “way of debt”.
Source: Financial Express