Nearly 18 months ago, the Ruias decided to sell off the refining business to pare off debt.
Also, while the Ruias were investing across telecom, steel and power, the Ambanis were focused only on the refinery," says an industry veteran.
But Mombasa refinery proved economically unviable and the Ruias exited last year.
This means the Ruias would prefer to resolve the Essar Steel debt separately through financial restructuring.
Based on discussions, banks are offered 30-35 per cent stake in the company and seats on the board, while the Ruias will retain management control with a 40 per cent stake.
For diluting their stake in favour of banks, the Ruias sought about `10,000 crore to be converted into long-dated securities redeemable at a later date, the loan repayment period extended to 20 years, and the interest rate cut by 2 per cent to about 9.
With these, the dreams of Ruias in North America are almost over and they may not come back to owning these assets again.
This is not the first time that Ruias have done so.