ArcelorMittal arm offers Rs 4,000 crore for Uttam Galva Steels; CoC approves bid
The Committee of Creditors of Uttam Galva Steels Limited has approved the Resolution Plan submitted by AM Mining India Private Limited, a subsidiary of ArcelorMittal group, through e-voting process which was held between 17th May, 2021 to 2nd June, 2021, the corporate debtor informed the exchanges today.
The ArcelorMittal arm has offered to pay Rs 4,000 crore for the distressed steel manufacturer. The CoC has approved the bid by a 100% vote share.
The insolvency petition against Mumbai-based Uttam Galva Steels was first moved by State Bank of India in December 2017. However, due to various legal delays the Mumbai bench of NCLT admitted the application only in October 2020.
Uttam Galva Steels owed banks and financial institutions close to Rs 9232. Out of the Rs 9,232 crore, ArecelorMittal India Pvt Limited had extended more than 70% of the loan. ArcelorMittal had extended Rs 3036 crore as working capital loan and the rest as corporate tem loan to the corporate debtor. Operational creditors had claimed Rs 11,256 crore.
ArcelorMittal emerged as the sole bidder for Uttam Galva Steels. Six other firms, including JSW Steel, Jindal Steel & Power (JSPL) and Vedanta-owned ESL Steel, had also submitted their expression of interest (EOI).
