Lenders to Essar Steel will be meeting on Wednesday to discuss restructuring of company’s long-term debt of Rs 40,000 crore. The meeting will discuss various options including conversion of portion of loan into instruments carrying specific interest rates.
The proposal coming up for discussion has been on the table for the last couple of months after Essar Steel failed to meet its June deadline to find a new buyer for their 10-million-tonne plant.
“Though steel prices have moved up and the benefit of MIP (minimum import price) has improved financial profile of steel companies, it is still inadequate to meet repayment burden,” a senior public sector bank executive told Business Standard…
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