Changes in IBC may help ArcelorMittal place a fresh bid for Essar Steel

Insiders said both bids have failed the legal eligibility test, as ArcelorMittal held 29% stake in Uttam Galva Steels, an NPA for over a year

A panel set up by the Ministry of Corporate Affairs (MCA) is making two important changes in the Section 29A of the Insolvency and Bankruptcy Code (IBC). These would help ArcelorMittal place a fresh bid for Essar
Steel. 

First, the definition of “connected people” is being amended. ArcelorMittal has investments in two non-performing assets (NPA) — Uttam Galva Steels and KSS Petron. According to the changed definition, any entity which was not in control of the management of an NPA can apply for other IBC cases. As ArcelorMittal and its promoter LN Mittal were not managing the affairs of the