In the battle to taking over insolvent Electrosteel Steels, Vedanta Ltd, one of the bidders, on Saturday said it has been declared "successful resolution applicant" under the insolvency process and has received the letter of Intent (LoI).
The Anil-Agarwal led company has "accepted" the terms of the LoI.
Following a direction from the Kolkata bench of National Company Law Tribunal (NCLT), the Committee of Creditors (CoC) to the insolvent steel producer had decided to go ahead with Vedanta, rejecting objections raised by the Renaissance Steel on its eligibility to bid for the debt- laden company.
"Vedanta Limited hereby informs that it has been declared as the successful resolution applicant by the Committee of Creditors for Electrosteel Steels Limited under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016 and has received a Letter of Intent today (Saturday) informing the company about the same," it said in a regulatory filing.
"It has accepted the terms of the LoI. The closure of the transaction will be subjected to compliance with applicable regulatory requirements and as per the final terms approved by the National Company Law Tribunal."
The NCLT's Kolkata bench, on March 20, had directed the resolution professional of the debt-laden company to place all the objections of Renaissance Steel against the eligibility of Vedanta and Tata Steel to bid for the insolvent company before the CoC for its "independent consideration".
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The Abhishek Dalmia-led Renaissance Steel had alleged that its two rival bidders were not eligible to bid for the insolvent steel maker as per the Section 29A of the Insolvency and Bankruptcy Code.
--IANS
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