Friday, October 26, 2018

Ruias changes the script, offers full settlement to lenders

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Essar Steel, made a last minute offer of Rs 54300 Cr, invoking the Section 12 A of the Insolvency and Bankruptcy Code, which allows a company to exit the bankruptcy process if it offers to repay the dues of all lenders and 90 per cent of the lenders agree.

Essar Steel says that the shareholders of the company have offered the Committee of Creditors full settlement of the entire admitted claims of the financial creditors, operational creditors, and workmen and employees of Essar Steel India, aggregating to Rs 54389 Cr.


 The plan includes an upfront cash payment of Rs 47500 Cr to all creditors, including Rs 45559 Cr to the senior secured financial creditors, resulting in 100 per cent recovery for lenders. SBI and Canara Bank are the main lenders, among others.

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