Committee of Creditors has selected ArcelorMittal as the preferred bidder for Essar Steel, the embattled steel producer. The Lakshmi Mittal-owned steel giant bagged the lenders’ approval following a long legal battle with other players in the race for acquiring Essar Steel, especially Russian VTB Bank-promoted Numetal.
The company said it will now enter into further final negotiations with the creditors. Essar Steel was one of the 12 companies referred by the Reserve Bank of India put up for insolvency proceedings.
ArcelorMittal said in a statement, “ArcelorMittal confirms it has been informed by the Committee of Creditors (CoC) for Essar Steel India Limited (ESIL) that it has been evaluated to be the H1 Resolution Applicant (the preferred bidder) in the corporate insolvency resolution process for ESIL.”
Earlier this week, ArcelorMittal agreed to pay Rs 7,469 crore to the creditors of Uttam Galva and KKS Petron to be eligible to acquire Essar Steel in line with the Supreme Court order. Around 80 per cent of the Rs 7,649 crore payment is to be used to settle the dues of Uttam Galva and the rest 20 per cent for KSS Petron.
The largest steel producer in the world said, “ArcelorMittal announces that in-line with the Indian Supreme Court ruling dated 4 October 2018, it has approved a payment of 7,469 crore rupees (approximately $1 billion) to the financial creditors of Uttam Galva and KSS Petron to clear overdue debts in order that the offer it submitted for Essar Steel India Limited (ESIL) on 2 April 2018 is eligible and can be considered by ESIL’s Committee of Creditors (CoC).”