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Essar offers note-holders alternative options

Essar Steel today said its note-holders were offered a restructuring plan in London yesterday. "The investors have sought further details about the plan which will be provided shortly," the company said in a statement.

The restructuring plan presented three options to investors in the company's floating rate note.

These included extending the maturity of the loan by 12 years on par with secured creditors of the company, extending maturity of the loan by five years and continue as an unsecured creditor or exit on a basis to be negotiated, Essar said.

Investors have sought details and specific plans from the company which will be provided shortly in consultation with Bank of America Securities LLC, the company said.

The meeting was attended by note-holders representing $ 100 million along with the trustees, Chase Manhattan Trustees Limited and the solicitors of the company, the statement said.

Essar Steel is a two-million-tonne per annum company with a plant at Hazira in Gujarat state.

The floating rate notes or FRNs matured in July and Essar had defaulted on their repayment and has been trying to reschedule their repayment.

UNI

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