New Delhi: Shareholders of embattled Essar Steel on Thursday offered to pay 54,389 crore, including an upfront cash payment of 47,507 crore, to clear all dues owed to lenders.

The move aims at pulling the company out of insolvency proceedings.

The proposal was made as the Committee of Essar Steel Creditors voted on a takeover offer made by the world’s largest steel maker, ArcelorMittal.

Also read: E-voting for ArcelorMittal’s resolution plan delayed, result on Thursday

“The shareholders of Essar Steel have today (Thursday) submitted a proposal to the Committee of Creditors (CoC) for full settlement of the entire admitted claims of financial creditors, operational creditors, and workmen and employees of Essar Steel India Ltd (ESIL), aggregating 54,389 crore, under Section 12A of the Insolvency and Bankruptcy Code," the company said in a statement. The plan includes an upfront cash payment of 47,507 crore to all creditors, including 45,559 crore to secured financial creditors. This would mean that secured financial creditors made full recovery of their dues.

“The CoC is empowered to consider and approve this settlement plan with the requisite voting share, on the basis of which the corporate insolvency resolution process against ESIL may be withdrawn," according to the statement.

Also read: ArcelorMittal’s Essar Steel acquisition: Who wins, who loses

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