Essar Steel: Committee of creditors still backing ArcelorMittal’s bid


Essar Steel: Committee of creditors still backing ArcelorMittal’s bid

ArcelorMittal’s acquisition of Essar Steel is a done deal despite attempts by erstwhile promoters, the Ruias, to retain the asset, said bankers with knowledge of the matter. On the other hand, a final decision on the matter may be delayed by hurdles posed by Deutsche Bank and Standard Chartered Bank, they said.

The committee of creditors (CoC), which voted overwhelmingly in favour of ArcelorMittal’s resolution plan under the Insolvency and Bankruptcy Code (IBC), is unlikely to consider a late attempt by the Ruias to save their crown jewel.

Their offer last week to repay all loans cannot be considered, since it has come after a Supreme Court-ordered process has ended, the bankers said. They described the offer as a timewasting tactic.

More than 92% of creditors had approved the resolution plan on October 25. Read  More

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