Essar Steel seeks withdrawal from IBC process, offers Rs 54,389 cr to all creditors

In a surprise move, the Ruias, promoters of Essar Steel, have put in an agressive Rs 54,000 crore offer to repay the company's entire debt and wrest back control of their flagship asset. "The shareholders of Essar Steel have today submitted a proposal to the Committee of Creditors (CoC) for full settlement of the entire admitted claims of the financial creditors, operational creditors, and workmen and employees of Essar Steel India Ltd (ESIL), aggregating Rs 54,389 crore, under Section 12A of the Code," an official statement issued on Thursday evening said. The plan includes an upfront cash payment of Rs 47,507 crore to all creditors, including Rs 45,559 crore to the senior secured financial creditors, ensuring full recovery of dues. The move comes even as the CoC of Essar Steel has declared ArcelorMittal as the highest bidder in the auction for the steel company. The move comes even as the CoC of Essar Steel has declared ArcelorMittal as the highest bidder in the auction for the steel company.