Business Standard

Lenders sweeten Essar deal, offer Rs 1,000 cr more to operational creditors

The Rs 1000 crore offer could mean a higher haircut for banks


Dev Chatterjee Mumbai
Lenders to Essar Steel have decided to sweeten their offer to operational creditors of the bankrupt company by offering Rs 1,000 crore more from what ArcelorMittal has submitted as its resolution plan.

In the meeting of the Committee of Creditors held in Mumbai on Wednesday, the lenders decided to seek votes on the proposal from all the banks that have an exposure to Essar Steel, and the results are expected by Saturday.

The additional funds for operational creditors mean a higher haircut for the banks, which are waiting for the resolution of Essar Steel’s debt since June 2017.

Haircut is the amount a

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First Published: Mar 29 2019 | 1:13 AM IST

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