October 26, 2018 / 3:31 AM / a month ago

India's Essar Steel creditors' panel chooses ArcelorMittal's joint bid - CNBC TV18

Oct 26 (Reuters) - The committee of creditors of debt-laden Essar Steel India Ltd has chosen the resolution plan by ArcelorMittal SA and Japan’s Nippon Steel & Sumitomo Metal Corp as the winner, CNBC TV18 reported on Friday, citing sources.

The steelmaker has signed the letter of intent to buy Essar Steel for 420 billion rupees ($5.74 billion), CNBC TV18 said.

The news comes just a day after Essar Steel said its board and shareholders offered to pay 543.89 billion rupees ($7.43 billion) to creditors to settle their claims, allowing the company to exit a bankruptcy process.

Essar Steel, owned by the billionaire Ruia brothers, is one of a group of companies that are among India’s biggest debt defaulters that were dragged into the bankruptcy court last year. The moved was after a central bank order that was aimed at clearing record bad loans at the country’s banks.

ArcelorMittal, the world's biggest steelmaker, has been asked to notify the London Stock Exchange before it opens on Friday, CNBC TV18 reported twitter.com/CNBCTV18Live.

ArcelorMittal and Essar Steel did not immediately respond to a request for comment from Reuters. ($1 = 73.2200 Indian rupees) (Reporting by Tanvi Mehta in Bengaluru; Editing by Gopakumar Warrier)

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