Lenders of debt-ridden Essar Steel India Limited on Friday accepted ArcelorMittal’s resolution plan offer of Rs 42,000 crore. However, the decision to accept the offer is subject to the National Company Law Tribunal’s approval.
Essar Steel’s debts amount to around Rs 49,000 crore. It is s one of the first 12 companies referred by the Reserve Bank of India to be listed under the Insolvency and Bankruptcy Code in June 2017.
The lenders heard presentations by ArcelorMittal and Vedanta on Friday. The committee of creditors had disqualified Numetal Mauritius as it had “not paid its dues before the October 19 deadline”, Mint reported.
ArcelorMittal confirmed the development, MoneyControl reported. “ArcelorMittal confirms it has been informed by the Committee of Creditors for Essar Steel India Limited that it has been evaluated to be the H1 Resolution Applicant (the preferred bidder) in the corporate insolvency resolution process for ESIL,” the company said in a statement.