ArcelorMittal Placed A Higher Bid For Essar Steel In First Round

ArcelorMittal Placed A Higher Bid For Essar Steel In First Round

The first round of resolution plans submitted for Essar Steel Ltd saw ArcelorMittal India offer greater value than competitor Numetal Mauritius, bankers in the know told BloombergQuint on condition of anonymity.

The first round of bids were opened by the Committee of Creditors (CoC) on Tuesday after the National Company Law Tribunal (NCLT) said that the committee must determine the eligibility of these bids after reviewing them. The CoC had earlier chosen to reject both bids even before they were opened, as the resolution professional appointed in the Essar Steel insolvency case deemed them to be ineligible under Section 29 (A) of the Insolvency and Bankruptcy Code (IBC).

ArcelorMittal proposed a 35-40 percent haircut on financial creditors’ dues, said two people familiar with the bid details. Numetal’s bid proposed a steeper haircut of 65-70 percent, they said. Essar Steel owes more than Rs 49,000 crore to financial creditors. Read More

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