ESIL’s Resolution Professional, on behalf of the CoC, has issued the Company with a Letter of Intent (‘LOI’) stating that the Company has been identified as the ‘Successful Applicant’.
Further to ArcelorMittal being named the H1 Resolution Applicant (the preferred bidder) on 19 October 2018, ESIL’s CoC has now approved the Company’s Resolution Plan for ESIL, with the LOI identifying it as the ‘Successful Resolution Plan’. The Resolution Plan includes an upfront payment of 42,000 crore rupees (*c. $5.7 billion) towards ESIL’s resolution debt, with a further 8,000 crore rupees (*c. $1.1 billion) of capital injection into ESIL to support operational improvement, increase production levels and deliver enhanced levels of profitability.
ESIL is an integrated flat steel producer, and the largest steel company in western India. Its current level of annualised crude steel production is c. 6.5 million tonnes. ESIL also has iron ore pellet facilities in the east of India, with current annual capacity of 14 million tonnes per annum. ArcelorMittal’s Resolution Plan details: