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Bankers ask IRP more information for fresh INR 1000 crore loan for Essar Steel – Report

2017-10-12

Financial Express, citing senior bankers, reported that lenders to Essar Steel have asked the resolution professional (IRP) for information to substantiate the company’s demand for INR 1,000 crore of fresh working capital loans. Bankers said the committee of creditors believes the company can manage without the additional funds. A banker said “While the RP has asked us to consider the proposal, we have asked for more information that would explain the need for more credit.”

The company already owes banks close to INR 45,000 crore, and the Essar Group INR 1.17 lakh crore. While SBI leads a consortium of 22 lenders that account for 93% of the company’s debt, Essar Steel also owes around INR 3,700 crore to Standard Chartered Bank. Essar Steel’s Mauritius-based subsidiary had borrowed from Standard Chartered, for which Essar Steel’s promoters were guarantors.

Source : Financial Express