ArcelorMittal is owning 99.76 percent voting rights in KSS Petron and will decide on the latter's revival plan after the UK-based steel major paid the lenders of the engineering, procurement and construction (EPC) company, said a media report.
The KSS Petron resolution professional informed Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday that 99.76 percent voting rights in the EPC company are with ArcelorMittal now. The committee of creditors (CoC) led by ArcelorMittal will decide on the revival plan submitted by Mauritius-based Royal Investment Partners, said a report in Mint.
“The development came after the Supreme Court order of 4 October when the apex court had asked the company to pay dues for Uttam Galva Steel and KSS Petron to be eligible to bid for Essar Steel," advocate Jitendra Kumar, appearing for the KSS Petron resolution professional, informed the bench, said the report.
In October 2018, ArcelorMittal had said it would pay Rs 7,469 crore to the creditors of Uttam Galva and KKS Petron to be eligible to acquire the debt-laden firm, as per the Supreme Court order.
The Supreme Court had on 4 October granted one more opportunity to ArcelorMittal and NuMetal to bid for Essar Steel if they clear their non-performing asset (NPA) dues of their related corporate debtors within two weeks.
"ArcelorMittal announces that, in-line with the Indian Supreme Court ruling dated 4 October 2018, it has approved a payment of 7,469 crore rupees (approx $1 billion) to the financial creditors of Uttam Galva and KSS Petron to clear overdue debts in order that the offer it submitted for Essar Steel India Limited (ESIL) on 2 April 2018 is eligible and can be considered by ESIL's committee of creditors," the Luxembourg-headquartered company said.
Of the Rs 7,469 crore payment, around 80 percent will be used to settle the dues of Uttam Galva and the rest 20 percent for KSS Petron.
— With PTI inputs
To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day.
To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Jan 24, 2019 15:37:25 IST