Arcelor Mittal clarifies terms of Essar Steel bid

The committee of creditors of Essar Steel has clarified to an appellate tribunal that ArcelorMittal’s bid for Essar Steel was for Rs 39,500 crore and a minimum of Rs 2,500 crore for profits of the debt laden steelmaker during insolvency proceedings. This backs the claim put forth by Standard Chartered, one of the financial creditors, before the National Company Law Appellate Tribunal (NCLAT) that the Rs 39,500 crore bid by ArcelorMittal was below the Rs 42,000 crore offer the latter made in front of the Supreme Court. Standard Chartered holds a corporate guarantee by Essar Steel for aRs 3,487 crore loan to Essar Steel Offshore. The case will next be heard on May 20.