ArcelorMittal offers Rs. 8 billion to Indian Steel lenders

Lakshmi Mittal-promoted ArcelorMittal India, the frontrunner to acquire bankrupt Indian Steel Corporation, has reportedly offered an upfront payment of Rs. 8 billion to lenders. Lenders of Indian Steel Corporation have already begun voting on the resolution plans offered by AM Mining, an ArcelorMittal-linked company, and Khandwala Finstock. The voting will end on May 10. Indian Steel Corporation was admitted for insolvency proceedings last October by the National Company Law Tribunal.

Almost all lenders are believed to favour the ArcelorMittal plan since its offer is upfront and higher than that from Khandwala Finstock, and would imply a recovery of nearly 30 per cent of the claim amount for lenders. Khandwala Finstock's offer is much lower and staggered over a few years.