Apart from being the most successful cases under the IBC, Bhushan Steel and Essar Steel are among the best steel assets in the country. They also ended up helping their lenders get back a significant chunk of the money while allowing Tata Steel to consolidate its position and giving the world's two largest steel makers - ArcelorMittal and Nippon Steel - a strong foothold in India. A significant contrast was the pace at which these two cases were resolved under the bankruptcy code. In the annals of the Insolvency and Bankruptcy Code (IBC), Essar Steel may go down in history as the most noticeable resolution with the world's largest steelmaker, ArcelorMittal, and the incumbent, Ruia family, locked in an intense battle spanning more than two years and ultimately resulting in full recovery of the principal amount for the financial creditors.
Ruias-controlled Essar group on Thursday said it will delist its two steel and oil arms from stock exchanges to gain more flexibility in running the companies.
Riding high on upswing in the steel sector, Essar Steel has repaid entire Rs 927 crore (Rs 9.27 billion) debt of Unit Trust of India.
Essar Steel aims to participate in the indigenisation of products used in naval defence
Seeking ArcelorMittal be declared ineligible to bid for Essar Steel, the petition cited Section 29A of the Insolvency and Bankruptcy Code which bars promoters of defaulting companies from bidding for stressed assets.
Essar Steel is reportedly in talks to acquire Egypt's Kandil Steel.
Essar Steel's 4.6 million tonne per annum (mtpa) at Hazira generates 20-24 per cent slag and less than one per cent dust, both are waste products. Essar Steel uses electric arc furnaces to produce the commodity in its lone domestic steel-making facility at Hazira in Gujarat. It is also setting up additional 4.9 mtpa facility adjoining to the existing plant.
The Committee of Creditors have issued ArcelorMittal and its partner Japan's Nippon Steel & Sumitomo Metal Corp a Letter of Intent declaring them as the "successful applicant".
The Essar group hinted at challenging the verdict, citing last week's Supreme Court order that upheld the August 2018 amendment to the IBC law.
Ruias to sell Essar Steel stake to strategic partners.
J S Verma, general manager of Essar Steel, was on Tuesday arrested for allegedly conspiring in funding Naxal groups in Dantewada area of Chhattisgarh.
Setting aside the NCLAT order, a 3-judge bench headed by Justice R F Nariman, said the two set of creditors will be treated differently during the insolvency proceedings and taking over of a debt-ridden firm by another company.
Leading steel manufacturers SAIL and Essar Steel on Friday refuted the charges of 'cartelisation' and 'unfair trade practices', levelled by ancillary steel producers, by attributing steep hike in HR Coil prices to sky-rocketing raw material costs.
Essar Steel wants to partner with a foreign company to consolidate its position in the automobile steel market in India. The company, soon to be a 10-million tonne per annum manufacturer, has 20-25 per cent of the auto steel market. It does not wish to lose any of it to the recent joint ventures formed by various Indian steelmakers with Japanese ones.
The NCLAT's order is offensive because it goes against every tenet of bankruptcy reorganisation. If Justice Sudhansu Mukhopadhyay's tenets are accepted by the Supreme Court, we will not only regress in modern bankruptcy reorganisation but also slide back in the Doing Business rankings, says Omkar Goswami.
A two-member bench headed by Justice S J Mukhopadhaya said there is no stay on the Resolution Professional of Essar Steel to disburse the funds among financial and operational creditors of the company.
Sources close to the development said a significant amount of around Rs 7,000 crore had been put into the SBI account with a proposal on escrow of the deposited funds.
The sale of the NPA account is to happen through e-auction on January 30, as per the bid invite.
According to data available on the website of World Steel Organisation, only eight steelmakers produced over 20 million tonne (mt) steel in 2009 with ArcelorMittal, leading at 77.5 mt.
The investments would be made in the company's acquired companies, Algoma in Canada and Minnesota Steel in the US, as well as greenfield plants in Trinidad and Tobago. The groundbreaking ceremony for the first steelmaking facility in Minnesota's Iron Range was held on Sunday.
These service centres will be set up across India, North America and the Middle East to cater to specific steel requirements of the auto, white goods and SME sectors. Essar intends to set up about 15-20 such centres with a cumulative capacity of 4.2 million tonnes per annum as against the present 2.5 MTPA. The Rs 1,000 crore proposed for the project would include the costs incurred on expansion of the company's existing service centres, Essar Steel Group CEO J Mehra said.
Essar Group has announced the appointment of Malay Mukherjee as chief executive officer of its steel business, effective from October 15. He will take charge from current CEO J Mehra, who will assume a new role as director, Essar Group, and will continue to support the promoter-directors in business strategy, investments, corporate relations and corporate governance.
Ruias owned Essar Steel on Monday announced that they have agreed to acquire Canadian Algoma Steel for an aggregate value of Canadian $1.8 billion (approx. US $1.58 billion) to be paid in cash.
You have to grow, and grow fast - that's the DNA of the JSW group, chairman Sajjan Jindal said as JSW Cement made its debut on the stock market mid-August. The remark captured not just the moment but also the momentum of JSW's growth story.
The US acquisition comes barely three days after Essar Global announced its acquisition Canadian firm Algoma Steel for $1.58 billion (Rs 6,900 crore).
In 2007, Essar had said it would set up a $1.8-bn unit in Minnesota, but scaled down from a full-scale taconite steel mill project to pellet plant after the 2008 financial crisis
Essar Steel said on Monday it has joined hands with two state-run Vietnamese companies for setting up a two million tonne steel plant in southern Vietnam at a cost of $527 million (about Rs 23.71 billion).
Essar Group co-founder Shashi Ruia has died after a prolonged illness. He was 80.
The government has already decided to accord priority to fertiliser and power units for allocation of gas from the Krishna-Godavari basin. According to sources, the empowered group of ministers on gas, which met last week, has made it clear it will be able to provide additional gas to steel firms only after meeting the requirements of the power and fertiliser units. Among the steel majors, Essar, Ispat and Vikram Ispat have gas-based units.
May take Rs 1,000-crore hit to re-route country's longest slurry pipeline
"Essar Steel's plate mill became the first primer plate producer in the country to be recognized for indigenous development of steel for building ships for the Indian Navy ... Company has received a prestigious order from Mazagoan Dock (MDL) to supply 13,000 tonnes of heavy plates," the company said in a statement.
The state government has cleared the proposal and the plant is to be set up at Bagalkot, industry sources said, adding that project details were being worked out. Initially, the plant would have a 3 mtpa capacity which would be doubled to 6 mtpa in the second phase. The proposal is to set up a pellet plant, a coke oven plant and a battery in the first phase. Essar has asked the state government to lease an iron ore mine for uninterrupted supply of the raw material.
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