ArcelorMittal on Wednesday said the company will pay around Rs 7,469 crore as overdue loans of Uttam Galva Steels and KSS Petron to become eligible to bid for Essar Steel.

"In-line with the Supreme Court ruling dated October 4, 2018, it has approved a payment of 7,469 crore rupees (approx. $1 billion) to the financial creditors of Uttam Galva and KSS Petron to clear overdue debts in order that the offer it submitted for Essar Steel India Limited (‘ESIL’) on April 2, 2018 is eligible and can be considered by ESIL’s Committee of Creditors (‘CoC’)," the company said in a statement.

Both Uttam Galva Steels and KSS Petron had been classified as non-performing assets (NPAs) for more than a year, which made ArcelorMittal ineligible for Essar under the Insolvency and Bankruptcy Code.

On October 4, the Supreme Court gave time to ArcelorMittal and Numetal to clear NPA dues to be eligible to bid for Essar Steel. The deadline for payment is October 18.

First Published:Oct 17, 2018 5:35 PM IST