NCLT Reserves Order in ArcelorMittal’s Plan for Uttam Galva Steel
Strategic Research Institute
Published on :
27 Apr, 2022, 5:54 am
Economic Times reported that the Mumbai bench of the National Company Law Tribunal has reserved its order on a petition filed by ArcelorMittal India Pvt Ltd’s wholly-owned subsidiary AM Mining India Pvt Ltd for approval of the resolution plan for Uttam Galva Steel Ltd. The Mumbai bench, presided by members PN Deshmukh and KK Vohra, reserved the order after listening to arguments from the counsels of the Resolution Professional Mr Milind Kasodekar, the bidder and collectors. The tribunal stated that we will clarify the concern of every stakeholder in the order and directed all to file their written submissions.
The tribunal additionally reserved its order on a separate plea filed by the gross sales tax division, which argued that the corporate owed over INR 500 crore to the division however the Resolution Professional has admitted solely INR 31 crore.
Appearing for the ArcelorMittal subsidiary, senior advocate Ravi Kadam together with Shahezad Kazi of S&R Partners instructed the tribunal that the revival plan was nearly unanimously permitted by the lender. The firm emerged as the only real bidder for Uttam Galva Steels in March 2021.
On October 1, 2020, the tribunal admitted an insolvency petition towards the debt-laden Uttam Galva Steels in a petition filed by the State Bank of India. The firm had defaulted on its exterior industrial borrowing facility prolonged by the financial institution to the tune of USD 6.6 million in November 2019. Earlier, the loans have been taken over by ArcelorMittal, which paid off INR 4,922 crore to the secured monetary lenders of Uttam Galva Steels, together with SBI, and later, the overdue principal paid was assigned to ArcelorMittal India. ArcelorMittal had acquired the debt of the corporate from Uttam Galva’s.