Will pay Rs 42,000 cr for Essar Steel: ArcelorMittal

Global steel major ArcelorMittal Monday told the National Company Law Appellate Tribunal (NCLAT) that it would pay Rs 42,000 crore, including a minimum of guarantee of Rs 2,500 crore as working capital, for acquiring debt-laden Essar Steel under the insolvency process.

Senior advocate Harish Salve appearing for ArcelorMittal also accused Ruias, former Essar Steel promoters, of creating hurdles in the resolution process of the bankrupt steelmaker.

According to him, there have been eight attempts by Ruias to create hurdles in the insolvency resolution process of Essar Steel.

The NCLAT is hearing a batch of appeals filed by several stakeholders challenging National Company Law Tribunal (NCLT)'s approval to ArcelorMittal's resolution plan for Essar Steel.

Countering the allegation of Standard Chartered bank over valuation of Essar Steel, Salve submitted that the liquidation value of Essar Steel was Rs 15,800 crore and ArcelorMittal India is paying almost three times, which is "fair", "reasonable" and "adequate" to meet the interest of the stakeholders.

Salve contended that during the resolution period, Essar Steel had a profit of Rs 3,500 crore and the company is already providing Rs 2,500 crore as working capital.

"As ArcelorMittal has assured a working capital of Rs 2,500 crore, a profit of Rs 3,500 crore means that ArcelorMittal will make available a sum of Rs 43,000 crore to the creditors of the company," Salve said adding that "Rs 42,000 crore is the frozen figure".