ArcelorMittal, the world’s largest steel maker has announced that, in-line with the Supreme Court ruling dated October 4, it has approved a payment of Rs 7,469 crore (approximately $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 April 2, 2018 is eligible and can be considered by ESIL’s Committee of Creditors (‘CoC’).
ArcelorMittal’s Board of Directors believes that ESIL represents a unique and compelling opportunity for the company to establish a significant footprint, with substantial expansion potential, in the high-growth Indian steel market. It concluded that, given the significant benefits that ESIL would bring to ArcelorMittal, making this payment was an appropriate course of action under the circumstances.
As stipulated in the Supreme Court ruling, ESIL’s CoC now has an eight-week period to accept what it considers to be the best resolution plan from eligible applicants.
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