Steel major ArcelorMittal will up its bid for Essar Steel to Rs 42,000 crore and will also settle its dues of Rs 7,000 crore to Uttam Galva and KSS Petron, to stay ahead of rival bidder Numetal, sources close to the development said.
The Lakshmi Mittal-promoted steelmaker’s move comes after the National Company Law Appellate Tribunal (NCLAT) said late last week that Arcelor’s bid would be eligible only if it clears the dues of Uttam Galva and KSS Petron.
The appellate tribunal asked ArcelorMittal to clear the dues by September 11 while ruling that Numetal’s second bid for an amount of Rs 37,000 crore was eligible.
Meanwhile, a meeting of the committee of creditors (CoC) of Essar Steel remained inconclusive on Monday probably because lenders were awaiting dues of Rs 7,000 crore to be paid by ArcelorMittal.
While the company had earlier said it would repay the dues only if it was allowed to take control of Essar Steel, the NCLAT insistence it must repay the loans to be eligible to bid for Essar Steel means it had no choice if it wanted to stay in the race.
The H1 bidder is likely to be selected only after both bids are declared eligible. Both ArcelorMittal and Numetal have been locked in a bitter battle for more than a year to gain control of Essar Steel. —FE