Arcelor Mittal Initiates Payment of INR 42,000 Cr to Take Over Essar Steel

Arcelor Mittal, the world's largest steel manufacturer initiated payment of INR 42,000 crore for the acquisition of debt-ridden Essar Steel. As per reports, payment from Arcelor Mittal has started flowing and entire payment is expected to be cleared in a day or two.

On 15 Nov'19, SC gave its final verdict of how the resolution proceeds are to be split between different classes of creditors in Essar Steel's insolvency case. The apex court overruled the NCLAT's decision and has said that the court should not interfere with the decisions of the committee of creditors (CoC).

The Supreme Court paved the way for ArcelorMittal takeover of Essar Steel and set aside the July NCLAT order giving equal status to financial creditors and operational creditors.

As per the plans approved by the committee of creditors (CoC), upheld by the apex court in its 15 Nov ruling, SBI will receive the largest chunk at about INR 12,161 crore while Canara Bank will get INRs 3,493 crore and ICICI Bank INR 2,110 crore.

Essar Steel has 10 MnT steel manufacturing complex in Hazira, Gujarat.

~ Source: PTI