According to recent reports, ArcelorMittal cleared debts related to previous obligations to allow it to bid for Essar Steel. It has offered Rs 39,400 crore (US$5.4 billion) cash up front, Rs 2,500 crore (US$341 million) cash infusion into the company, and a promise to infuse a further Rs 8,000 crore (US$1.1 billion) in the near future for Essar Steel. Rs 18 crore (US$2.5 million) of the money would go to workers and employees who are presently owed.
The secured lenders are slated to get Rs 42,000 crore (US$5.7 billion) on a total debt of Rs 49,000 crore (US$6.7 billion), recovering 86 percent of the debt. The two largest debt holders at 35 percent are State Bank of India and Edelweiss ARC. Final electronic voting will be available within a day, but ArcelorMittal has been previously selected as the preferred bidder by the committee of creditors of Essar Steel, therefore, it is anticipated that lenders will approve the most recent offer.