Battle For Essar Heats Up: ArcelorMittal Ups The Ante With Rs 42,000 Crore Bid For Debt-Ridden Steel GiantChairman of ArcelorMittal Lakshmi N Mittal. (Arvind Yadav/Hindustan Times via Getty Images)

ArcelorMittal, the world’s largest steelmaker, has reportedly increased its bid for acquiring Essar Steel to Rs 42,000 crores which is significantly higher than the Rs. 37,000 crores offer made by the consortium of Numetal-JSW Steel.

However, the lenders have decided to seek legal opinion in respect of the revised bid by ArcelorMittal. The National Company Law Appellate Tribunal (NCLAT) had earlier asked ArcelorMittal to clear the dues of two companies classified as Non-Performing Assets (NPA) which were either co-promoted or controlled by it. Section 29A(c) of the Insolvency and Bankruptcy Code, 2016 also places a bar on promoters with NPAs from bidding for assets without clearing earlier dues.

ArcelorMittal is said to have moved the Supreme Court seeking a stay of the above NCLAT order. The company had earlier deposited Rs 7000 crores in an overseas current account of the State Bank of India (SBI) with the condition that the same would be payable to the lenders if the company were adjudged the buyer of Essar Steel. However, the NCLAT had refused to accept this payment as discharge of the company’s dues as an offer to repay debt would not fructify till the stipulated conditions were satisfied.

All eyes will be on the Supreme Court to see if the operation of the NCLAT order is stayed and on the company’s steps to discharge the debts of its NPAs.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement