Corporate

ArcelorMittal’s Essar Steel win spells loss for Gujarat

The Gujarat government is set to lose as much as ₹1,150 crore* if the dedicated bankruptcy court upholds the committee of creditors’ recommendation to accept the resolution plan of ArcelorMittal to acquire Essar Steel Ltd, said two senior officials close to the development. These dues are classified as operational creditors and ArcelorMittal’s proposal has not made any provision for payment to such creditors, they said, requesting anonymity. Essar Steel owes about ₹1,150 crore to a clutch of Gujarat government companies including ₹872 crore to Gujarat Energy Transmission Corp Ltd. The resolution plan envisages upfront payment of ₹42,000 crore to lenders and additional ₹8,000 crore towards capital expenditure. The total admitted claims of operational creditors totals ₹4,995 crore. ArcelorMittal has offered to settle it at ₹214 crore.

Leave a Reply

Your email address will not be published. Required fields are marked *