ArcelorMittal Starts Paying for Essar Steel Acquisition

Release time：Dec 17, 2019 From：admin

Media reported that ArcelorMittal has initiated payment for acquisition of Essar Steel for INR 42,000 crore. Reports quoted sources as saying that "ArcelorMittal has arranged the entire amount of INR 42,000 crore which is likely to be transferred to State Bank of India, the lead banker to take control of Essar Steel under the Insolvency and Bankruptcy Code.”

The repayment comes almost a month after the November 15th Supreme Court verdict, which paved the way for ArcelorMittal to takeover Essar Steel and also upheld the primacy of financial creditors over other classes of creditors. The closing of the transaction will bring to an end the more than 800-day-long corporate insolvency resolution process. Essar was admitted to the National Company Law Tribunal on August 2, 2017.

Essar Steel will be jointly owned and operated by ArcelorMittal and Nippon Steel Corporation in line with the joint formation agreement signed by the two companies. According to the agreement, ArcelorMittal will hold 60 per cent in the venture; the rest will be with Nippon Steel. Both companies will have equal representation and voting rights on its board of directors.