In response to Essar Oil’s petition in the Honorable Supreme Court on principal repayment schedule and waiver\remission of interest in the Sales Tax issue, today the honorable court has directed the company to pay INR 1,000 crore to the Gujarat government towards sales tax\VAT dues by July 30th. Essar Oil had offered to pay this amount in its submission to the court.

On payment of this amount of INR 1,000 crore, coercive steps already taken by State, would be stayed.

As previously announced, Essar Oil is also in advanced discussions with Indian lenders with regard to putting in place a c. USD 1 billion (INR 50 billion) loan facility as a contingency measure for use in the event that the sales tax liability becomes payable immediately or that Essar Oil is not able to negotiate a satisfactory repayment schedule. We expect this facility to be finalised shortly.

Source - Essar Oil

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