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The creditors' committee of Essar Steel India Ltd., heavily indebted in debt, has chosen ArcelorMittal SA and Japan's Nippon Steel & Sumitomo Metal Corp as successful purchasers of the badet, Nippon Steel said in a statement released to the public. Friday.
Two companies would pay a total of $ 5.7 billion to buy Essar Steel, a spokesman for Nippon Steel said. ArcelorMittal would own a majority stake and Nippon Steel would have an almost equal interest.
"The acquisition will be carried out subject to the approval of the Indian National Court of Companies and other competent authorities," the statement said.
Essar Steel has aroused the interest of Indian steel producers such as JSW Steel and Vedanta Ltd., as well as international companies and banks such as the Russian company VTB and ArcelorMittal.
Surprise Offer of Essar Steel
The news comes just a day after the founders of Essar Steel had submitted a surprise offer of paying 543.89 billion pounds sterling (7, $ 4 billion) to creditors to settle their claims and allow the company to go out of bankruptcy proceedings.
The founders of Essar – the Ruia family – attempted to retain the steel badets, initially through a minority stake in the consortium led by VTB, Numetal. Id for Steel Essar, and later Thursday in the last effort by an independent bid.
The showdown between Numetal and ArcelorMittal went to the Supreme Court of India which ruled this month that bidders should settle all outstanding taxes related to the troubled badets they were badociated with before being able to bid on the steelworks.
ArcelorMittal announced last week that it had proceeded to the removal of royalties from Uttam Galva and KSS Petron, two other smaller defaulting buyers. which he was previously badociated with, paving the way for the acquisition of Essar Steel's badet.
"We anticipate that the process will continue under the clear terms of the IBC" [Indian Bankruptcy Code]ArcelorMittal said on Thursday.
Essar Steel, a 10 million-ton steel mill located in Gujarat, is part of 39, a dozen of the largest Indian debtors in default that were brought to court in bankruptcy last year by a central bank order to eliminate $ 147 million in bad debt. [19659002] Banks and other creditors and suppliers have claimed claims amounting to £ 507.78 billion from Essar Steel, according to data from the Indian government.
ArcelorMittal and Essar Steel n & # 39; did not immediately respond to a request for comment from Reuters .
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