NEW DELHI: ArcelorMittal group has successfully bid for yet another steel company Uttam Galva Steel -- through the corporate insolvency resolution process (CIRP). The Mumbai bench of the National Company Law Tribunal (NCLT) on Friday gave its approval to Rs 4,000-crore resolution plan submitted by AM Mining India, a subsidiary of ArcelorMittal for Uttam Galva. Earlier, the Committee of Creditors had approved the resolution plan submitted by AM Mining India with a 100% vote share. Others in the race for Uttam Galva Steel were JSW and Jindal Steel and Power Ltd.
The NCLT approved the resolution plan submitted by the ArcelorMittal group without any changes or amendments, and rejected all challenges to the plan. ArcelorMittal group was represented by Ravi Kadam, Senior Advocate and advised by a team from Karanjawala & Co and a team from S&R Associates. Uttam Galva had been under the insolvency process on an application filed by State Bank of India after the former defaulted on a payment of Rs 110 crore. The NCLT admitted the application in October 2020.
Uttam Galva owed Rs 9,340 crore to financial creditors. ArcelorMittal India was the largest financial creditor accounting for 69.35% of the total due amount. Before Uttam Galva, ArcelorMittal and Nippon Steel had successfully bid for Essar Steel for a sum of Rs 41,000 crore in 2018. The LN Mittal-led group has also acquired Odisha Slurry Pipeline Infrastructure for Rs 2,350 crore in 2020.
Uttam Galva Steel, which was incorporated in 1985, is engaged in the business of manufacturing downstream value-added steel products in India. The Company procures hot rolled steel (HR) and processes it into cold rolled steel (CR) and further converts them into galvanized steel and colour-coated coils.