Rs 52,000 crore deal! Debt-laden Essar Steel set to be sold to ArcelorMittal


Rs 52,000 crore deal! Debt-laden Essar Steel set to be sold to ArcelorMittal

Luxembourg-based ArcelorMittal and its consortium will cough up Rs 52,000 crore to take over Ruia-promoted Essar Steel and Odisha Slurry Pipeline Infrastructure, two sources close to the development said.

While Rs 42,000 crore will be paid to the creditors of the debt-laden Essar Steel, about Rs 2,000 crore will be paid to take over Odisha Slurry Pipeline Infrastructure. The ArcelorMittal consortium will further invest Rs 8,000 crore in Essar Steel.

The negotiations to set up a resolution plan with the committee of creditors (CoC) took place over the weekend, a source said. The lenders to Essar Steel will vote on this resolution plan today. Though the Supreme Court ruling made ArcelorMittal’s bid of Rs 35,000 crore for the Hazira-based Essar Steel plant eligible, an upped amount was necessary to keep the CoC appeased.

The company has agreed to sweeten its offer to stave off possible conflicts among lenders, which may impact the voting slated for Monday. Read More

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