ArcelorMittal to Acquire Distressed Uttam Galva Steel
ArcelorMittal, one of the world’s largest steelmakers, resolution plan has received approval from the creditors of Uttam Galva Steels Ltd acquired the distressed steel company under the bankruptcy process. The Committee of Creditors of Uttam Galva Steels Limited has approved the Resolution Plan submitted by AM Mining India Private Limited through e-voting process which was held between 17 May, 2021 and 2 June, 2021,” Uttam Galva Steels said in a regulatory filing. Under the plan, ArcelorMittal is likely to pay around Rs 4,000 crore as against claims of around Rs 20,650 crore, of which almost Rs 9,400 crore is owed to financial creditors and Rs 11,255 crore towards operational creditors. Billionaire Lakshmi Mittal-owned ArcelorMittal emerged as the sole bidder for the debt-laden Uttam Galva Steels under the bankruptcy process in March this year. Other prospective bidders including JSW Steel, Jindal Steel & Power (JSPL) and Vedanta-owned ESL Steel, had submitted expressions of interest for the firm. A large part of Uttam Galva Steel’s loans was taken over by ArcelorMittal from public sector banks to bid for Essar Steel in 2018. ArcelorMittal had made payments worth Rs 4,922 crore (excluding interest) to secured financial lenders, Uttam Galva Steel’s annual report for 2019-20 said. With 250 acres of land and more than 100 000 square metres of covered shed, the Uttam Galva Steel plant is located near Khopoli, which is 100 km away from Mumbai. As per the firm’s website, the plant has a facility for cold-rolling HR coils, with a capacity of 1,000,000 tonnes per year and annual galvanising capability of 750,000 tonnes. At present, 50% of the firm’s finished steel production is being exported.
Tags : ALLIED ArcelorMittal Acquire Distressed Uttam Galva Steel