STEEL giant ArcelorMittal told an Indian appellate tribunal that it would pay Rs 420 billion (£4.73bn) including a minimum guarantee of Rs 25bn as working capital to acquire Essar Steel.
The company told the National Company Law Appellate Tribunal (NCLAT) that it was ready to pay the sum under the insolvency process to purchase debt-ridden Indian steel firm.
Senior advocate Harish Salve who appeared for LN Mittal owned firm accused Ruias, former Essar Steel promoters, of creating blockades in the resolution process of the bankrupt steel company.
Salve clarified before the tribunal that the issues related to the alleged non-performing assets (NPAs) of the firms of LN Mittal’s brother have already dealt with and dismissed by the country’s top court, Supreme Court.
The advocate noted that the NCLT and the lenders would decide over the equal distribution of funds among the creditors of the debt-ridden steel mill.
Essar Steel Asia Holdings Ltd (ESAHL) alleged that ArcelorMittal chairman and chief executive officer, LN Mittal has suppressed some important facts that would otherwise render him ineligible to offer purchase plan for Essar Steel under country’s Insolvency and Bankruptcy Code (IBC).
ESAHL, a shareholder of Essar Steel Ltd had also sought disqualification of LN Mittal’s bid for Essar Steel.