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Infrastructure major ArcelorMittal, which is close to acquiring bankrupt Essar Steel Ltd, has agreed to repay the entire debt owed by two Essar Group-owned coal terminals once the acquisition is completed, Mint reported, citing sources, who added that Essar Group has also agreed to settle dues.
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According to the report, the two dry bulk coal terminals — Hazira terminal in Gujarat and Paradip terminal — owe a total of Rs 1,848 crore. Hazira owes lenders Rs 1,364 crore, while the Paradip terminal owes Rs 484 crore.
One of the sources told the paper that ArcelorMittal is willing to pay 100 cents to the dollar on the outstanding debt on these assets. “These are stressed assets and as of now, the principal amounts are not being serviced. The Essar Group paid interest on this debt last in October, but hasn’t paid any instalments that have been due since then," the source was quoted as saying in the report.
“The Essar Group has also told us they will pay the outstanding in full. Let’s see if this comes through. We cannot force a change in management, but we will consider insolvency proceedings if the outstanding is not paid. We are hoping that once there is a final resolution on Essar Steel, there will be a resolution to these loans as well," a lender was quoted as saying.
Sources added that Essar has appointed VTB Bank to look for financial investors in the Hazira assets.
First Published: Mar 28, 2019 8:41 AM IST