Moneycontrol
Last Updated : May 15, 2018 06:28 PM IST | Source: Moneycontrol.com

ArcelorMittal transfers Rs 7,000 cr to SBI escrow A/c to clear Uttam Galva dues

ArcelorMittal continues to believe "it’s eligible" and has transferred the money to “show its commitment to India and Essar Steel,” sources told Moneycontrol.

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ArcelorMittal has transferred Rs 7,000 crore to an SBI escrow account, as it looks to clear dues of Uttam Galva Steels and with it the eligibility hurdle in its bid for Essar Steel.

ArcelorMittal continues to believe "it’s eligible"  and has transferred the money to “show its commitment to India and Essar Steel.”

"ArcelorMittal can confirm it has written to the Committee of Creditors (CoC) for Essar Steel India Limited (ESIL) in response to the letter received on May 8, 2018.  The details of this letter are confidential.  However, ArcelorMittal maintains that its offer for Essar Steel, submitted on February 12, is and always has been eligible," a statement from ArcelorMittal said.

"Any offer to pay any outstanding loans of companies where we only had a passive stake with no management or governance role, would be made without prejudice to demonstrate the seriousness of our commitment to India and ESIL.  We continue to believe that a swift resolution is in the best interests of ESIL and its stakeholders, including its employees who deserve a strong and certain future," the statement said.

On May 14 Moneycontrol had reported that ArcelorMittal has written to Essar Steel lenders, for the first time indicating that it may pay off dues of Uttam Galva Steels to clear the eligibility hurdle.

"Yes, ArcelorMittal has written to all the banks asking the due amount required to clear their name," a source had said on condition of anonymity.

"They've also maintained that they are not 'legally obligated' to pay but will clear off the dues as a goodwill gesture," the source had said.

With the dues paid, and the eligibility hurdle cleared, ArcelorMittal will emerge as the higher bidder as the company had bid more than Numetal in the first round of auction.

Late April, it had emerged that ArcelorMittal had offered Rs 32,000 crore for Essar Steel, while VTB Bank-led Numetal had bid Rs 18,000 crore.


The lenders may wait for the NCLAT hearing on May 17, where both the bidders have challenged their disqualification, before taking a final call.
First Published on May 15, 2018 05:54 pm
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