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To Allow for Essar Steel Acquisition, ArcelorMittal Agrees to Pay Off US$1B in Debt
10/17/2018 - ArcelorMittal said it is prepared to pay off the equivalent of about US$1 billion in debt on two businesses in which it had held ownership stakes in order to win approval to buy another.
In an announcement Wednesday, the steelmaker said it has approved a payment of 7,469 crore rupees to creditors of India’s Uttam Galva and KSS Petron. ArcelorMittal is making the payment so that its bid for Essar Steel India Ltd. can be considered, in compliance with the country’s bankruptcy and insolvency laws.
As the Bloomberg news service reports, India’s Supreme Court ruled earlier this month that ArcelorMittal and rival Essar Steel bidder Numetal Ltd. had to clear debts in group companies in order for their bids on Essar to be considered.
Bloomberg has more here.
