ArcelorMittal chairman and CEO LN Mittal
ArcelorMittal chairman and CEO LN Mittal

Essar Steel lenders settle for Arcelor

The Committee of Creditors issue ArcelorMittal and its partner Japan’s Nippon Steel & Sumitomo Metal Corp Letter of Intent declaring them as the “successful applicant”

New Delhi: The world’s largest steel maker, ArcelorMittal, on Friday said it had been chosen by lenders to takeover debt-laden Essar Steel for around 42,000 crore.

Also read: ArcelorMittal entry set to heat up India’s steel industry

In a statement, ArcelorMittal said its resolution plan for Essar Steel, which the lenders auctioned to recover over 49,000 crore of unpaid loans, included “an upfront payment of 42,000 crore" to settle debt and “a further 8,000 crore of capital injection into the company to support operational improvement, increase production levels and deliver enhanced levels of profitability".

The Committee of Creditors issued ArcelorMittal and its partner Japan’s Nippon Steel & Sumitomo Metal Corp a Letter of Intent (LoI) declaring them as the “successful applicant".

The development comes a day after promoters of Essar Steel offered to pay lenders 54,389 crore, including an upfront cash payment of 47,507 crore to clear all dues of lenders, and pull the firm out of insolvency proceedings.

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

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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