Supreme Court holds ArcelorMittal and Numetal not eligible to bid for Essar Steel unless they pay off the outstanding dues of Rs. 7000 crores thereby upholding Section 29A (c) of the IBC.
IL&FS is debt-ridden and it is feared that this will lead to a financial crisis similar to what transpired in USA when Lehman Brothers announced their bankruptcy. Government has intervened to stop the situation from worsening.
The resolution process has been substantially altered due to the introduction of Section 29A in the Insolvency and Bankruptcy Code. This article discusses the long debated topic of eligibility criteria of a resolution applicant.