Twist in Essar Steel tale: Ruias make last-minute bid to pay Rs-543-bn dues

Ruias' last minute offer came as lenders started voting on two offers made by ArcelorMittal and Vedanta

The promoters of debt-ridden Essar Steel took its creditors by surprise by offering to settle the entire claims of Rs 543 billion under Section 12A of the Insolvency and Bankruptcy Code (IBC). The rule allows a company to exit the bankruptcy process if it offers to repay dues and 90 per cent of the lenders accept the proposal, the Ruias said.

Essar Steel said on Thursday that shareholders of the company had offered the committee of creditors (CoC) full settlement of the admitted claims of financial creditors, operational creditors, and workmen and employees of Essar Steel India (ESIL),