MUMBAI, DECEMBER 27: Sixty-five per cent of investors in Essar Steel Ltd's overdue $ 250 million floating rate notes (FRNs) have agreed to suffer a loss by opting for the company's offer to repurchase the notes at $ 690 per $ 1,000 frn. The remaining 35 per cent FRN holders opted for a roll over at a meeting in London, Essar said in a statement here today. Essar said 16 per cent went in for 10-12 year roll-over on a secured basis and 19 per cent for five-year roll-over on an unsecured basis. Those who chose the cash option took a 31 per cent hit on the face value plus any accrued interest. Essar will have to pay only $ 112.12 million to them against the face value of $ 162.5 million.Based on the response of the FRN holders, Essar will now approach the financial institutions for funds to repay the FRN holders, as part of a larger debt restructuring package it has proposed. Essar expects to close the chapter on the FRNs, on which it defaulted earlier this year, by january 31, 2000. At the meeting, 90 percent of the FRN holders voted in favour of Essar's proposals, against the 75 per cent required for carrying through the extraordinary resolution. Indian banks, which had put in about $ 40 million in the frns, are believed to have opted for one of the roll over options.PTI
