Essar Steel lenders ignore Ruias' offer, approve bid by Arcelor and Nippon

Arcelor will jointly own and operate ESIL in partnership with Nippon Steel & Sumitomo Metal Corporation

Lenders to Essar Steel have spurned the Rs 543-billion settlement offer from the promoters and approved ArcelorMittal’s resolution plan for the debt-ridden company. The resolution professional for Essar Steel on Friday filed ArcelorMittal’s plan with the Ahmedabad Bench of the National Company Law Tribunal (NCLT), but the road to approval is likely to be riddled with legal challenges.

GPI Textiles, a company promoted by ArcelorMittal CEO Lakshmi Mittal’s brother 

Pramod Mittal, which is facing insolvency proceedings, has filed a caveat in the NCLT. Standard Chartered Bank, which has an exposure of Rs 35 billion in Essar Steel and was the sole dissenter