Non-Steel Repayments May Soften Bankers on Essar Bid

Essar Global Fund’s decision to repay the last tranche of the secured debt at its group entities could have broader ramifications for Essar Steel, the conglomerate’s steel-making business whose future ownership would be decided by the dedicated bankruptcy court, The Economic Times reported. Some in the legal circles believe the move by Essar Group’s holding company could prompt lenders to consider the group’s last-minute offer to repay Rs 54,389 crore and wrest back the control of the debtladen Essar Steel, currently facing insolvency proceedings. Essar Global Fund on Monday announced it had repaid its last tranche of debt of Rs 12,000 crore ($1.75 billion) to a clutch of Indian and foreign lenders. Essar Global Fund invests longterm capital in its portfolio of companies and holds nearly 100% stake in all its investments. In the past two years, the group has either returned or offered to repay more than Rs 1.37 lakh crore of borrowings, mostly to the Indian banking system, Essar Global Fund said in a statement. Read more

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