ArcelorMittal transfers Rs 7,000 cr to SBI escrow A/c to clear Uttam Galva dues
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ArcelorMittal transfers Rs 7,000 cr to SBI escrow A/c to clear Uttam Galva dues

9 news, 12

ArcelorMittal has transferred Rs 7,000 crore to an SBI escrow account, as it looks to clear dues of Uttam Galva Steels and with it the eligibility hurdle in its bid for Essar Steel.

ArcelorMittal continues to believe "it’s eligible" and has transferred the money to “show its commitment to India and Essar Steel.”

"ArcelorMittal can confirm it has written to the Committee of Creditors (CoC) for Essar Steel India Limited (ESIL) in response to the letter received on May 8, 2018. The details of this letter are confidential. However, ArcelorMittal maintains that its offer for Essar Steel, submitted on February 12, is and always has been eligible," a statement from ArcelorMittal said.

"Any offer to pay any outstanding loans of companies where we only had a passive stake with no management or governance role, would be made without prejudice to demonstrate the seriousness of our commitment to India and ESIL. We continue to believe that a swift resolution is in the best interests of ESIL and its stakeholders, including its employees who deserve a strong and certain future," the statement said.

"Yes, ArcelorMittal has written to all the banks asking the due amount required to clear their name," a source had said on condition of anonymity.

"They've also maintained that they are not 'legally obligated' to pay but will clear off the dues as a goodwill gesture," the source had said.

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