The committee of creditors of Essar Steel on Friday declared ArcelorMittal as the highest bidder for the bankrupt Essar Steel, pipping Anil Agarwal’s Vedanta Group.
In the second round of bids, ArcelorMittal had offered upfront Rs 35,000 crore to the lenders and had committed to infuse another Rs 8,000 crore into the company. Subsequently, the company had proposed to increase its upfront offer to Rs 42,000 crore but the Supreme Court had said that once the company cured its ineligibility its bid placed on April 2 (the second bid) is to be considered.
Vedanta, which had placed its bid in April, had committed around Rs 35,000 crore upfront to the lenders and another Rs 1,000 crore after three years. It had offered to infuse Rs 5,000 crore into the company. Read More