Even as all the hearings in Essar Steel insolvency case get over on February 19, there may still be a final twist in the seemingly unending auction race.
Sources told Moneycontrol that the Anil Agarwal-led Vedanta may make another attempt at buying Essar Steel. But this time, it won't be alone but may partner Sajjan Jindal's JSW Steel.
The two companies may come together and put in a joint bid of about Rs 47,000 crore, said an industry executive. "But a final call is yet to be taken," said the executive.
At present, ArcelorMittal's bid of Rs 42,000 crore has found backing from Essar Steel lenders. The Ruias, through their holding company Essar Steel Asia Holdings, had submitted a proposal of Rs 54,000 crore. But the lenders haven't taken it up, and the courts have also turned down Ruias request.
Vedanta, which had submitted an Expression of Interest for Essar at the starting of the auction, had earlier submitted a bid in the second round. But later, the second round was called off by the National Company Law Tribunal (NCLT).
JSW Steel has been vocal about its interest in Essar Steel. Earlier, it had teamed up with Numetal, the VTB Bank-led consortium, to submit a bid in the second round. The Jindal company can't put in a sole bid, despite giving such an offer to the lenders, as it hadn't submitted an expression of interest.
Despite the possibility of this last-gap development, it remains to be seen if the lenders, and then the courts, will entertain the bid that will further delay the insolvency process that has already crossed over 570 days.
Last week, the National Company Law Appellate Tribunal had directed the NCLT to complete hearing by February 19 and give orders. The Appellate Tribunal will take up the case on February 28, and possibly will pass a judgment.
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