ArcelorMittal undervaluing Essar Steel, say Ruias
A day after ArcelorMittal castigated corporate rivals for trying to sabotage its takeover bid of insolvent EssarSteelNSE 0.00 %, the Essar Group, which is now interested in getting back the debt-laden steel company, shot back saying the objective of Insolvency and Bankruptcy Code (IBC) is maximisation of recovery for creditors and that their bid is higher by Rs 12,000 crore.
“The proposal made by Essar Steel shareholders provides for payment of a total of Rs 54,389 crore to various creditors, which exceeds the resolution plan currently approved by the creditors by more than Rs 12,000 crore,” the Group led by the Ruias said in a statement.
It said the proposal was submitted under recently introduced Section 12A of the IBC. Under the proposal made by the shareholders of the bankrupt company, all classes of creditors would receive full recovery of their claims, it said.