Deals
Arcelor to Clear $1 Billion in Dues as Essar Deadline Looms
- India’s top court had given bidders until Thursday to pay dues
- Essar’s lenders have eight weeks to decide on preferred bidder
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ArcelorMittal agreed to pay off loans for two group companies in India to be eligible to bid for the indebted Essar Steel India Ltd. as the world’s largest steelmaker seeks to get a foothold in a market that is poised to be second-biggest producer of the alloy.
The company approved payment of 74.69 billion rupees ($1 billion) to creditors of Uttam Galva Steels Ltd. and KSS Petron Pvt., the Luxembourg-based ArcelorMittal said in a statement Wednesday. India’s Supreme Court had asked Arcelor and a rival consortium Numetal Ltd., led by VTB Capital, to clear dues in group companies by Thursday to be deemed eligible bidders for Essar.