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Essar Steel’s Committee of Creditors approves ArcelorMittal’s acquisition of Essar Steel

Staff Writer |
ArcelorMittal announced Essar Steel India Limited’s (ESIL) Committee of Creditors (CoC) has voted to approve the company’s acquisition of ESIL.

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ESIL’s Resolution Professional, on behalf of the CoC, has issued the Company with a Letter of Intent (LOI) stating that the Company has been identified as the ‘Successful Applicant’.

Further to ArcelorMittal being named the H1 Resolution Applicant (the preferred bidder) on 19 October 2018, ESIL’s CoC has now approved the Company’s Resolution Plan for ESIL, with the LOI identifying it as the ‘Successful Resolution Plan’.

The Resolution Plan includes an upfront payment of 42,000 crore rupees (*c. $5.7 billion) towards ESIL’s resolution debt, with a further 8,000 crore rupees (*c. $1.1 billion) of capital injection into ESIL to support operational improvement, increase production levels and deliver enhanced levels of profitability.

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