Bidding To Win
Business Today|February 25, 2018

While ArcelorMittal, Tata Steel and Vedanta draw plans to buy Essar Steel, the Ruia family, too, is looking for a backdoor entry. Can it succeed?

Nevin John
Bidding To Win

IT WAS ASSUMED all along that Essar group director Prashant Ruia’s frequent trips to Moscow would conclude with the sale of Essar’s oil refinery business to Russian oil giant Rosneft. But there is more to it than meets the eye. The Moscow visits seem unlikely to end soon since the Ruias are now working towards forming a consortium with Russian bank VTB and Hong Kong-based SSG Capital Management to regain control of the debt-laden Essar Steel, put up for sale under the bankruptcy law. Essar Steel has over ₹43,000 crore of debt on its books.

As things stand, VTB and SSG are expected to contribute the lion's share of the funds required for the bid while the Ruias would most likely be minority shareholders in the consortium, say media reports. The move by the Ruias has captured the attention of the corporate world since it comes after the government amended the Insolvency and Bankruptcy Code (IBC) to prevent promoters of loan defaulting companies from regaining control without settling the overdue amount. It is clear that the Essar promoters will have to pay overdues, estimated to be between ₹6,000 crore and ₹7,000 crore – this includes interest and charges relating to non-performing asset accounts before the submission of the resolution plan. The deadline to submit bids for Essar Steel has been extended to February 12 from end-January after potential bidders sought more time to finalise their deal structure and funding arrangements.

A Crowded Race

Esta historia es de la edición February 25, 2018 de Business Today.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición February 25, 2018 de Business Today.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BUSINESS TODAYVer todo
"Moving to cloud helped us grow❞
Business Today India

"Moving to cloud helped us grow❞

What was the problem you were grappling with?

time-read
1 min  |
November 24, 2024
She's Got Time
Business Today India

She's Got Time

MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP

time-read
3 minutos  |
November 24, 2024
RISING STAR
Business Today India

RISING STAR

PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.

time-read
1 min  |
November 24, 2024
Building on a Legacy
Business Today India

Building on a Legacy

WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.

time-read
1 min  |
November 24, 2024
LEADER IN INNOVATION
Business Today India

LEADER IN INNOVATION

AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.

time-read
1 min  |
November 24, 2024
WAITING IN THE WINGS
Business Today India

WAITING IN THE WINGS

Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025

time-read
1 min  |
November 24, 2024
A DECENT PROPOSAL
Business Today India

A DECENT PROPOSAL

IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?

time-read
5 minutos  |
November 24, 2024
Women and the STEM Bias
Business Today India

Women and the STEM Bias

EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.

time-read
3 minutos  |
November 24, 2024
ROCKET WOMEN
Business Today India

ROCKET WOMEN

WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.

time-read
6 minutos  |
November 24, 2024
ONE STEP FORWARD
Business Today India

ONE STEP FORWARD

THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.

time-read
6 minutos  |
November 24, 2024