ArcelorMittal pays Rs 74.69 bn to creditors of Uttam Galva, KSS Petron

The move is in line Supreme Court that had asked ArcelorMittal and Numetal to clear dues associated with affiliated companies to become elligible to bid for Essar Steel

ArcellorMittal has approved a payment of Rs 74.69 billion to the financial creditors of the company, Uttam Galva informed on Friday.

The move is in line Supreme Court ruling dated October 4, 2018 that had asked ArcelorMittal and Numetal to clear dues associated with affiliated companies to become elligible to bid for Essar Steel under section 29(A) of the insolvency code.

"ArcelorMittal has approved payment to the secured financial creditors of the Company to clear its overdue debts in order that the offer ArcelorMittal submitted for Essae Steel India Limited (ESEL) on April 2, 2018 is eligible," Uttam Galva said in a regulatory filing.

On October 11, ArcelorMittal had written to Essar’s lenders expressing its intent pay the dues of Uttam Galva and KSS Petron and calculated the dues of the companies at Rs 45 billion, as per the letter. The calculation was based on the loan amount, including interest up to February 7 for Uttam Galva and February 9 for KSS Petron.