ArcelorMittal has transferred Rs 7,000 crore to an escrow account controlled by State Bank of India to become eligible to bid for Essar Steel Ltd., currently undergoing insolvency proceedings.
The funds will be used to extinguish any outstanding dues in Uttam Galva Steels Ltd. and KSS Petron Ltd., two people aware of the matter said on the condition of anonymity. The committee of creditors will now take this offer on record at its next meeting and verify the eligibility of the bidder, they added.
The India arm of the Luxembourg-based ArcelorMittal had bid for Essar Steels assets but was deemed ineligible by the committee of creditors owing to violations under Section 29(A) of the Insolvency and Bankruptcy Code. The National Company L…
Read the full article at: https://www.bloombergquint.com/insolvency/2018/05/15/arcelormittal-pays-rs-7000-crore-to-become-eligible-for-essar-steel