At the extraordinary general meeting convened at London on Tuesday,15th august 2000, the Floating Rate Notes (FRN) holders of Essar steel opted in favour of a five year extension of the maturity period. The resolution was passed with 97% of note holders voting in favour of the rollover and none against.
The resolution envisages rollover of the existing FRNS for a further period of five years.
The repayment will commence in phases with a 10% value of the notes falling due in the third year, 10% in the fourth year and the balance to be repaid in the fifth year. With this the issue of default stands settled.

The scheme has two options: one, rollover of five years with a lower interest rate and the other with a call option which could be exercised in the first three years for early payment at the company' option with discount.

This reflects confidence reposed by huge majority of note holders to remain as creditors to the company even at a lower interest cost.

Bureau Report