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ArcelorMittal deposits INR 7,000 crore in Escrow account with SBI - Report

Steel News - Published on Wed, 16 May 2018

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PTI citing a person in know of the development, reported that ArcelorMittal has transferred INR 7,000 crore to SBI to clear bank dues of loan defaulter Uttam Galva Steels so that it becomes eligible to bid for acquisition of Essar Steel. The persons said the funds in escrow account can be used to pay off outstanding dues of Uttam Galva Steel as well as KSS Petron Ltd.

The move to park about INR 7,000 crore in an escrow account of State Bank of India (SBI) follows ArcelorMittal’s bid for Essar Steel coming in for questioning because of its past shareholding in loan defaulter firm, Uttam Galva Steel.

ArcelorMittal parking the fund with SBI came as the deadline ended yesterday.

When PTI contacted, ArcelorMittal refused to comment on transfering of about INR 7,000 crore but said "Any offer to pay any outstanding loans of companies where we only had a passive stake with no management or governance role, would be made without prejudice to demonstrate the seriousness of our commitment to India and Essar Steel India Ltd. We continue to believe that a swift resolution is in the best interests of ESIL and its stakeholders, including its employees who deserve a strong and certain future.”

Source :

Posted By : Amom Remju on Wed, 16 May 2018
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