JSW Steel has strongly refuted ArcelorMittal’s allegation that its winning bid for Monnet IspatNSE -1.65 % was a “mockery” as JSW SteelNSE 0.67 % and Monnet Ispat promoters are related. Speaking on the day JSW Steel received and accepted the Letter of Intent (LoI) for Monnet Ispat, Seshagiri Rao, joint MD, JSW Steel, said the allegations have “no substance” and dismissed them as “acts of frustration” by ArcelorMittal.
Reacting to AM’s tweet on Wednesday targetted chairman Sajjan Jindal, Rao said that JSW has been declared a qualified resolution applicant. “We do not understand why these issues are being raked up now? The resolution professionals (RP) for both Monnet Ispat and Bhushan Steel have said that JSW Steel is an eligible as a resolution applicant as per the provisions of Section 29(A) of Insolvency and Bankruptcy Code, 2016. The RP is vested with the power to examine these issues and the matter has been up for scrutiny and it stood the test of scrutiny,” Rao told ET on Thursday a day after ArcelorMittal said JSW ‘ran afoul of 29A (of IBC) for Monnet Ispat.’ According to section 29A of the IBC, besides undischarged insolvents, wilful defaulters among others, the clause J of the section also bars persons or entities connected to a person disqualified under the section.
“Secondly, JSW has not invested in Monnet, neither has Monnet invest in JSW Steel,” Rao added.
“In case of ArcelorMittal –they held stake Uttam Galva as the investor themselves. Just being connected persons” — Monnet promoter Sandeep Jajodia’s wife, Seema, is the sister of JSW Steel promoter Sajjan Jindal — “does not disqualify a person,” Rao said. “There are a series of details one has to go into and it is not merely a question of only being related. There is no problem in qualifying only on the basis of being related,” he pointed out.
JSW Steel-Aion Investments consortium on Thursday received a letter of intent (LoI) for Monnet Ispat and Energy following the creditors’ 98.97% favourable vote for the company on Tuesday, the company said in a BSE notification. JSW said it has accepted the terms of the LoI and the plan is now awaiting necessary regulatory approvals from NCLT and the Competition Commission of India (CCINSE 0.00 %).
Source: Economic Times