Essar asked to cut Debt, find investor

The joint lenders forum has directed Essar Steel to speed up the process of issuing an information memorandum for attracting potential investment in the company.

Saddled with a debt of ₹40,000 crore, the company recently appointed SBI Capital Markets and ICICI Securities to find strategic investors in the company to reduce its debt.

This apart, the promoters have agreed to invest ₹1,500 crore in the company.

Earlier this week, Essar Steel was in discussion with the lenders to extend the tenure of ₹15,000 crore debt under the 5/25 scheme. Banks have already extended the same.

5/25 scheme

The 5/25 scheme entails periodic refinancing, say every five years, and fixing a longer repayment schedule for long-term projects as part of flexible structuring.  read more