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    Essar Steel deal: ArcelorMittal likely to pay off Uttam Galva's dues

    Essar Steel deal: ArcelorMittal likely to pay off Uttam Galva's dues

    Essar Steel deal: ArcelorMittal likely to pay off Uttam Galva's dues
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    By Nidhi Chugh   IST (Updated)

    ArcelorMittal has revealed that it may consider paying off the dues of Uttam Galva Steels as a ‘goodwill gesture’ and reiterated that its bid for Essar Steel remains eligible, Moneycontrol reported.
    The Committee of Creditors (CoC) met the representatives of ArcelorMittal and NuMetal on Wednesday. The two bidders were responding to queries on their eligibility.
    “It is believed that any repayment discussions on any outstanding dues by ArcelorMittal would be a gesture of goodwill as the company strongly insists that its offer is eligible,” sources told Moneycontrol.
    The lenders had earlier objected the company's investment in Uttam Galva, which had defaulted on loan repayments. The loans amount to Rs 8,000 crore.
    The bids from the two companies - NuMetal and ArcelorMittal - were termed ineligible in the first round of bidding for debt-laden Essar Steel.
    ArcelorMittal’s investments in Uttam Galva Steels - a defaulter – was the problem and for NuMetal, the connection between its minority shareholder Rewant Ruia and the founders of Essar Steel caused them the hurdle.
    The lenders' committee has the option to call for fresh bids if the eligibility issues for the two companies remain.
     
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