Arcelor's $6 Billion Essar Deal Stymied by Lenders' Squabble
- Bankruptcy tribunal should review deal first: Supreme Court
- Rupee drops as traders were positioning for big dollar inflows
The Essar Steel Ltd. Pune Facility near Pune, Maharashtra, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
ArcelorMittal’s plan to buy a bankrupt Indian steel company for $6 billion was halted temporarily by the nation’s top court, further delaying tycoon Lakshmi Mittal’s efforts to enter the world’s second-biggest market.
The Supreme Court ruled that Essar Steel India Ltd.’s current status has to be maintained, pending a review by a bankruptcy tribunal hearing appeals related to the sale. The company is currently being managed by a court-appointed administrator. Friday’s ruling was in response to petitions by banks, including Standard Chartered Plc, which are fighting over how money that’ll be received from the company’s sale should be distributed.