Debt-ridden Usha Martin said on Tuesday that the proceeds from the proposed deal with Tata Steel will be used for repaying existing debt, a day after its promoters questioned the end-use of funds.
The founders of Usha Martin Monday had sought details from the board of Usha Martin regarding utilisation of proceeds from the proposed sale of the company’s steel business to Tata Steel.
The company also said that it is clarified that UML will use the entire consideration (net of transaction costs and taxes, if any received from this sale to discharge liabilities to lenders.