India: Lenders mull higher payout to StanChart to expedite Essar Steel sale

Photo: Reuters

Lenders to bankrupt Essar Steel Ltd are considering increasing a payout to Standard Chartered Plc to expedite the sale of the company to ArcelorMittal, according to people with knowledge of the matter.

The move by the lenders is part of an attempt to complete Essar Steel’s sale by the end of March, the people said asking not to be named as the information is not public. Standard Chartered has filed a plea to National Company Law Appellate Tribunal (NCLAT) opposing a decision by a lower court to sell Essar Steel to ArcelorMittal, world’s largest steel producer.

Standard Chartered is opposing the sale to ArcelorMittal as it faces losing a substantial part of monies it has extended to Essar under the deal, according to people familiar with the matter. The National Company Law Tribunal (NCLT) last week approved ArcelorMittal’s offer to buy Essar Steel after months of court battles.

Standard Chartered declined to comment.

State Bank of India didn’t respond to an email seeking comment.

A committee of creditors (CoC) to Essar Steel, led by State Bank of India, will consider distributing nearly ₹3,000 crore ($43 million) to Standard Chartered and operational creditors, the people said. While the exact amount that would go to the UK lender isn’t decided, the amount that the committee had previously agreed to pay the bank was only ₹4,200 crore, the people said.

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Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.