International Steel Mills
March 29, 2016
Bank Lenders Look for Buyer for Essar Steel
Written by Sandy Williams
Bank lenders to Essar Steel Group have approached Tata Steel and JSW Steel to buy out the company according to sources quoted by CNBC. Bankers took matters in their own hands after expressing concern that Essar Steel cannot pay back Rs 40,000 crore (about $6 billion) in loans to State Bank of India and other bank lenders.
About 15,000 crore of the debt been refinanced to repay the amount in 25 years under terms that provides refinancing every five years. Essar Steel has missed payments and Bank of India and Bank of Boarda has classified the loans as non-performing assets.
