New Delhi: The world’s largest steel maker, ArcelorMittal, on Friday said it had been chosen by lenders to takeover debt-laden Essar Steel for around Rs 42,000 crore.
Essar Steel lenders settle for Arcelor
In a statement, ArcelorMittal said its resolution plan for Essar Steel, which the lenders auctioned to recover over Rs 49,000 crore of unpaid loans, included “an upfront payment of Rs 42,000 crore” to settle debt and “a further Rs 8,000 crore of capital injection into the company to support operational improvement, increase production levels and deliver enhanced levels of profitability”.
The Committee of Creditors issued ArcelorMittal and its partner Japan’s Nippon Steel & Sumitomo Metal Corp a Letter of Intent (LoI) declaring them as the “successful applicant”.
The development comes a day after promoters of Essar Steel offered to pay lenders Rs 54,389 crore, including an upfront cash payment of Rs 47,507 crore to clear all dues of lenders, and pull the firm out of insolvency proceedings.