ArcelorMittal is reported to have sent a letter to the lenders of Essar Steel, claiming that it is ready for repaying the dues worth Rs 4,554 crore of KSS Petron and Uttam Galva, as it wants to be eligible to bid for Essar Steel under the Insolvency and Bankruptcy Code. The letter contained details of overdue loans, which included interest up to February 7, 2018 for Uttam Galva and February 9, 2018 for KSS Petron.
Uttam Galva dues amounted to Rs 3,987 crore, according to the letter, including principal and interest charges for external commercial loans, working capital loans and rupee term loan. Apparently, the dues amounted to Rs 567 crore in the case of KSS Petron, which adds up the total amount to Rs 4,554 crore. However, sources close to the Essar Steel auction had indicated the total dues of ArcelorMittal connected to KSS Petron and Uttam Galva to be over Rs 7,500 crore, excluding the interest amount.
As per records, on October 4 the Supreme Court had ordered the world’s largest steelmaker to clear the dues of both loan defaulters, KSS Petron and Uttam Galva, where ArcelorMittal had a considerable stake before it exited them in February this year. After that it would be able to bid for Essar Steel, the apex court had said.
ArcelorMittal said to the Essar Steel’s committee of creditors (CoC) that the company intends to move forward with assigning of such overdue loans to ArcelorMittal India Private Ltd. The company responded to a letter sent on October 9 by the committee, saying that it will work separately with the committee to progress the execution of the necessary documents.
The steel producing company allegedly requested the CoC to coordinate with the lenders of KSS Petron and Uttam Galva to finish the compulsory steps quickly and efficiently in relation to such payments for ensuring compliance with the timeline specified by the SC Judgment.