ArcelorMittal hits out at JSW Steel, calls decision on Monnet Ispat 'mockery'

New Delhi: ArcelorMittal on Wednesday took a jibe at JSW Steel over the latter’s bid resolution plan getting approval from the committee of creditors (CoC) of Monnet Ispat and Energy Ltd (MIEL). [caption id=“attachment_601309” align=“alignleft” width=“380”]  ArcelorMittal Logo. AP image[/caption] Yesterday, the CoC of debt-laden Monnet Ispat and Energy Ltd, which is undergoing insolvency proceedings, had approved the resolution plan submitted by the only bidder Sajjan Jindal’s JSW Steel along with AION Capital. In a tweet today, ArcelorMittal hit out at Sajjan Jindal directly. “@sajjanjindal Interesting what decision is being taken on Monnet today given it’s clear JSW runs afoul of 29A as they are related to the existing promoter.who is making the mockery here?,” ArcelorMittal India tweeted tagging Sajjan Jindal.

The tweet was in response to Tuesday’s development in which the CoC had approved the resolution plan of JSW-AION, a source said. Sajjan Jindal’s sister is married to Sandeep Jajodia, promoter of Monnet Ispat and Energy – the firm facing insolvency proceedings and owes more than 10, 000 crore to its lenders. JSW Steel in a statement said it has declared as qualified resolution applicant as per the provisions of section 29(A) of Insolvency and bankruptcy code (IBC) 2016. “The intention of unfounded allegations may be to defame JSW Steel or probably using an insufficient or incorrect interpretation of information to mislead the general public. JSW Steel adheres to highest standards of corporate governance,” it said without naming ArcelorMittal. JSW Steel has gone through the rigour of scrutiny. After the thorough examination of facts, JSW Steel is declared as qualified resolution applicant as per the provisions of section 29(A) of Insolvency and bankruptcy code (IBC) 2016 not only in Monnet but in other stressed accounts, it added.