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Arcelor increases its Essar Steel bid to Rs 42,000 crores ArcelorMittal has agreed to make a larger offer of Rs 42,000 crores for Essar Steel, which is responsible for the debt, to following negotiations with the lenders of the company, have told the central bank. Until now, the offer included an initial payment of 35,000 crores to the lenders, in addition to a capital injection of 8,000 crores in the company.
The revised offer agreed between ArcelorMittal, promoter Lakshmi Mittal, and the bankers now includes an immediate payment. from 39,500 crores of rupee to the bankers.
In addition, if ArcelorMittal acquires control of Essar Steel, it would return to the lenders approximately 2,500 crore of working capital, a senior banker of a public bank exposed to Essar Steel,
. From there, ArcelorMittal will stick to its earlier offer to inject equity into Essar Steel for 8,000 crore. All payments to operational creditors and workers go beyond that.
Last week again, in accordance with the decision of the Supreme Court, ArcelorMittal approved a payment of Rs 7,469 crores to the financial creditors of Uttam Galva and KSS Petron to compensate for the delay. debts so that its April offer on Essar Steel can be considered eligible.
The latest offer that was put to the vote Tuesday by lenders is a review of the second call for tenders launched by lenders and resolution professional Satish Kumar Gupta. back in April, after the first call for tenders submitted by ArcelorMittal and Numetal, a company owned by the Russian bank VTB, were found to be ineligible.
Essar Steel, which owes lenders worth around 49,000 crore, is in the process of implementing insolvency resolution of companies under the Insolvency Code and the bankruptcies and is one of the first 12 bad debt accounts identified by the Reserve Bank of India for immediate reference under the IBC.
Mitali Salian
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