Essar Steel India proposes $7.42 billion settlement to creditors

Steel rolls at an ArcelorMittal plant, the company that said last week it would pay off creditors of two Indian firms, in which it previously held stakes, to bid for Essar. (AFP)
Updated 25 October 2018
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Essar Steel India proposes $7.42 billion settlement to creditors

DELHI: Essar Steel India Ltd. said its board and shareholders have offered to pay 543.89 billion rupees ($7.42 billion) to creditors to settle their claims, allowing the company to exit from a bankruptcy process.
The steelmaker, owned by the billionaire Ruia brothers, is one of a group of companies that are among India’s biggest debt defaulters that were pushed into the bankruptcy court last year after a central bank order that was aimed at clearing record bad loans at the country’s banks.
Essar Steel’s plan consists of an upfront cash payment of 475.07 billion rupees to all creditors, including a 455.59 billion rupees to the senior secured financial creditors.
The company submitted a proposal to its creditor committee on Thursday for settlement of the entire claims of the financial creditors, operational creditors, workmen and employees of Essar Steel India.
The offer will lead to “full upfront recovery of loans for the lenders, and maximum recovery for all other classes of creditors,” the company said.
The world’s biggest steelmaker, ArcelorMittal SA, is forming a joint venture with Japan’s Nippon Steel & Sumitomo Metal Corp. to bid for the debt-ridden Essar Steel.
ArcelorMittal said last week that it would pay off creditors of two Indian firms, in which it previously held stakes, to bid for Essar.


Egypt inks deal with Cyprus for power link to Europe

Updated 23 May 2019
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Egypt inks deal with Cyprus for power link to Europe

  • It is estimated the project will take 36 months to implement from the start of construction, with the lowest point 3,000 meters below sea-level
  • Phase 1 will see the interconnector carry a capacity of 1,000 MW which can be upgraded to 2,000 MW at a later stage

NICOSIA: Egypt has signed a deal with a Cypriot firm to lay a 310-kilometer (195-mile) cable under the Mediterranean to export electricity to Europe, the company said on Thursday.
Nicosia-based EuroAfrica described the deal, worth an estimated two billion euros, as a “landmark.”
“Cyprus now becomes a major hub for the transmission of electricity from Africa to Europe,” said company chairman Ioannis Kasoulides.
It is estimated the project will take 36 months to implement from the start of construction, with the lowest point 3,000 meters below sea-level.
Phase 1 will see the interconnector carry a capacity of 1,000 MW which can be upgraded to 2,000 MW at a later stage.
“The national electricity grid of Egypt will be linked to the European electricity system through Cyprus and will contribute to energy security,” Kasoulides said.
Following the crises in Crimea and eastern Ukraine, the EU has been keen to develop alternative sources of energy to reduce its dependence on imports from Russia.
In the past year, gas has started flowing from four major new fields off Egypt’s Mediterranean coast, and output is already sufficient to meet domestic needs.
The Arab world’s most populous country is now seeking to develop the infrastructure to export its newfound energy wealth, both as liquefied natural gas and as electricity.
Egypt is also seeking to import gas from fields off Cyprus and Israel to boost the profitability of the new liquefaction and export facilities it is developing on its Mediterranean coast.
In September, Egypt signed a deal with Cyprus to build an undersea pipeline to pump Cypriot offshore gas to Egypt for processing for export to Europe.
The plans have led to closer eastern Mediterranean ties, with Cyprus, Egypt, Greece and Israel holding regular high-level meetings.