Monday, December 20, 2010

Bankers give informal nod to JSW's bid for Ispat

JSW Steel has made offer to Ispat corporate debt restructuring (CDR) lenders, sources say. IDBI Bank, ICICI Bank, IFCI were part of the meeting. Bankers have given informal approval to JSW Steel's bid for Ispat, sources inform. Sources further say, Ispat will have to issue fresh shares.

Meanwhile, Ispat Industries’ lenders have rejected waiver of outstanding preference shares dividend, sources inform. Outstanding dividend on preference shares amounts to Rs 700 crore.  Ispat will use Rs 200-250 crore of proceeds to clear debt, sources add.

Earlier, sources indicated that JSW Steel has emerged as the top bidder to buy lenders' stake in debt-ridden Ispat Industries.

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