ArcelorMittal emerges as highest bidder for Essar Steel

New Delhi: Global steel giant ArcelorMittal has announced that it has been selected as preferred bidder for the debt-laden Essar Steel by the Committee of Creditors.

The Lakshmi Mittal-owned company, which is the world’s largest steel maker has been on a murky legal battle with other bidders, especially the Russian VTB Bank-promoted NuMetal to take over Essar Steel.

“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,” ArcelorMittal said in a statement.

The company said it will now enter into further final negotiations with the CoC. Essar Steel was among the 12 companies referred by the RBI for Insolvency proceedings.

ArcelorMittal, earlier this week has said it will pay Rs 7,469 crore to the creditors of Uttam Galva and KKS Petron to be eligible to acquire the debt-laden firm, as per Supreme Court order.

The Supreme Court on 4 October had granted one more opportunity to the world’s largest steelmaker ArcelorMittal and Russia’s VTB Capital-backed NuMetal to bid for Essar Steel if they clear their non-performing asset (NPA) dues of their related corporate debtors within two weeks.

“ArcelorMittal announces that, in-line with the Indian Supreme Court ruling dated 4 October, it has approved a payment of 7,469 crore rupees (approx $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 is eligible and can be considered by ESIL’s Committee of Creditors (CoC),” the Luxembourg-headquartered company has said.

Of the Rs 7,469 crore payment, around 80 per cent will be used to settle the dues of Uttam Galva and the rest 20 per cent for KSS Petron, the company said.

NT Bureau