Arcelor to clear $1bn in loans as Essar Steel deadline nears
Mumbai — ArcelorMittal has agreed to pay off loans for two group companies in India to be eligible to bid for the indebted Essar Steel India as the steel maker seeks a foothold in a market that is poised to be the second-biggest producer of the alloy. The firm approved payment of 74.69-billion rupees ($1bn) to creditors of Uttam Galva Steels and KSS Petron, ArcelorMittal said on Wednesday. India’s supreme court had asked Arcelor and a rival consortium, Numetal, to clear dues in group companies by Thursday to be deemed eligible bidders for Essar. Numetal declined to comment on payment by the deadline. A failure to clear the dues will make Numetal ineligible, paving the way for Arcelor to emerge as the preferred bidder, unless the lenders call for fresh bids. Bloomberg
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