Home / Business / Lenders may settle Uttam Galva dues, move likely to aid ArcelorMittal – informationspot

Lenders may settle Uttam Galva dues, move likely to aid ArcelorMittal – informationspot

Click Here

Lenders are exploring the possibility of settlement of dues of Uttam Galva Steels, a move that could ease the way for ArcelorMittal’s bid for Essar Steel. ArcelorMittal was an early investor in A counsel for State Bank of India, the lead lender to Uttam Galva Steels, on Tuesday said before the Mumbai bench of the (NCLT) that lenders were exploring the possibility of a settlement with the company. In case a settlement was reached, the insolvency proceedings might not be required. But the settlement would have to be reached by April 10. Promoter Ankit Miglani declined to comment on the development. ArcelorMittal also did not comment. had become an issue for ArcelorMittal’s bid for stressed assets when the government amended the Insolvency and Bankruptcy Code (IBC) and introduced Section 29A. It prevented promoters of with non-performing assets (NPAs) for more than a year from submitting resolution plans, if they did not pay the overdue amount with interest. ArcelorMittal held a 29.05 per cent stake in The L N Mittal-led company, however, was a passive investor with no board representation or management control. On February 7, prior to the submission of the Essar Steel bid, ArcelorMittal Netherlands BV transferred its entire shareholding in Uttam Galva to Sainath Trading Company for Rs 1 a share. But questions were still raised about ArcelorMittal’s promoter status at the time of turning into an NPA. State Bank of India (SBI) had already moved a petition for beginning insolvency proceedings against Uttam Galva Steels, but it had not been admitted by the tribunal, sources close to the development said.

The amount, mechanism and a detailed framework would be worked out, but first the process of insolvency proceedings had to be halted. The discussions were taking place at the highest level, sources added.

Click Here
Source link

About sammy

Check Also

Debt bomb and shadow banking: What China’s new central bank governor faces – informationspot

The Chinese government has appointed a new head of its central bank. Yi Gang, …

Leave a Reply

Your email address will not be published. Required fields are marked *