Title: Arcelor Mittal offers Rs 800 crore upfront to Indian Steel lenders
Lakshmi Mittal-promoted ArcelorMittal India, the frontrunner to acquire bankrupt Indian Steel Corporation, has offered an upfront payment of Rs. 800 crore to lenders, said people aware of the matter.
Lenders of Indian Steel Corporation have already begun voting on the resolution plans offered by AM Mining, an ArcelorMittal-linked company, and Khandwala Finstock, the people said. The voting will end on May 10, one of the people said.Indian Steel Corporation, a company owned by former promo ..
ArcelorMittal declined to comment, while Indian Steel Corporation's resolution professional, Ajay Joshi, did not respond to a request for comment. Naveen Jindal-promoted Jindal Steel & Power and Metro Global had also submitted expressions of interest for the steel company, but did not submit a firm bid.
The NCLT admitted Indian Steel last October at the behest of India Resurgence Asset Reconstruction Company, which is backed by Bain Capital and Piramal Enterprises. The resolution professional admitted Rs. 2,709 crore of financial creditors' claims. India Resurgence ARC holds 72%, or Rs. 1,945 crore, of this debt.The ARC acquired the debt from various banks over the last three years.
In May 2019, the largest lender, State Bank of India, sold its Rs. 929 crore debt to India Resurgence ARC for Rs. 362 crore. Punjab National Bank holds 20% of the debt and Jammu & Kashmir bank has 6%, while the balance is held by IDBI Bank and Union Bank of India,according to company website.