ArcelorMittal Tells NCLAT It Will Pay Rs 42,000 Crore For Essar Steel Takeover
Global steel major ArcelorMittal told the National Company Law Appellate Tribunal that it would pay Rs 42,000 crore, including a minimum of guarantee of Rs 2,500 crore as working capital, for acquiring Essar Steel under the insolvency process.
Senior advocate Harish Salve appearing for ArcelorMittal also accused Ruias—former Essar Steel promoters— of creating hurdles in the resolution process of the bankrupt steel maker. According to him, issues related to alleged non-performing assets of the companies of Lakshmi Mittal's brother have been already dealt with and rejected by the Supreme Court.
Salve further submitted that the National Company Law Tribunal and lenders would decide over the distribution of funds among creditors of Essar Steel. He also added that the distribution should be "equitable" between financial creditors and operational creditors.
The NCLAT will continue to hear the Essar Steel insolvency case on May 21. Earlier, Essar Steel Asia Holdings Ltd, a shareholder of Essar Steel Ltd, had alleged that ArcelorMittal Chairman and Chief Executive Officer LN Mittal suppressed vital facts that would have otherwise rendered him ineligible to offer a buyout plan for the distressed steel mill under Section 29A of the Insolvency and Bankruptcy Code. It had also sought disqualification of ArcelorMittal's bid for the debt-laden company.