Creditors Approve ArcelorMittal Offer for Essar Steel

Creditors of India’s bankrupt Essar Steel have accepted an offer from ArcelorMittal, the global steel giant said on Friday, in a major step towards its efforts to establish a meaningful presence in India, the Financial Times reported. The announcement came a day after Essar’s founding Ruia family offered to pay off the company’s entire outstanding debt of Rs543bn ($7.4bn), in a last-ditch attempt to pull the company out of the insolvency proceedings and halt the sale by creditors. The Ruia family has fought fiercely to hang on to control of Essar Steel in a series of legal challenges that have tested the foundations of India’s radical new insolvency framework. The landmark bankruptcy law, introduced in 2016, was viewed by bankers and investors in the country as a critical part of solving a bad loan crisis that had escalated as banks opted for leniency with defaulting companies rather than fight legal battles that could drag on for a decade or more. Read more