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ArcelorMittal to pay US$1.02B to creditors for Essar Steel bid eligibility

To make its offer for Essar Steel India Ltd. eligible, ArcelorMittal approved a payment of 74.69 billion Indian rupees to creditors of Uttam Galva Steels Ltd. and KSS Petron Pvt. Ltd. to clear overdue debts.

The steelmaker said Oct. 17 that the payment was the appropriate course of action under the circumstances.

As stated in the early October Indian Supreme Court ruling, Essar Steel's committee of creditors has eight weeks to decide on the best resolution plan from eligible applicants.

As of Oct. 16, US$1 was equivalent to 73.30 Indian rupees.