Essar Steel resolution still in knots; creditors may delay decision on bids

Next week's creditor meeting might be delayed; Numetal argues its bid legally sound

The committee of creditors for insolvent Essar Steel is likely to delay a decision on the bids by ArcelorMittal and Numetal.

Both the latter face the prospect of their offers being rejected, since the law does not allow promoters with stake in companies that have bad loans to bid for companies under the insolvency process.

Numetal, a Special Purpose Vehicle floated last year by a clutch of investors including VTB Bank of Russia, has presented a case against any disqualification of its bid by the appointed Insolvency Resolution Professional (IRP). It had,a source disclosed, contended to the IRP that its resolution plan