Ministerial committee may pave way for ArcelorMittal's Essar Steel bid

ArcelorMittal is facing an eligibility test on the ground that the company and its promoter, L N Mittal, had investments in non-performing Uttam Galva Steels and KSS Petron, respectively

The insolvency law committee is meeting on Monday to finalise the recommendations to amend Section29A. The section has a provision that bars those related to debtor companies having toxic assets that are classified as non-performing for a year or more from taking part in the bidding process under the Insolvency and Bankruptcy Code (IBC).
 
The amendments are expected to change the definition of ‘connected-party’, thereby, allowing bids from companies such as ArcelorMittal. The world’s largest steelmaker is facing an eligibility test on the ground that the company and its promoter, L N Mittal, had investments in non-performing Uttam Galva