ArcelorMittal is Sole Bidder for Uttam Galva Steels - Report
Business Standard reported that ArcelorMittal is the sole bidder for Uttam Galva Steels. Sources told BS “Six other firms, including JSW Steel, Jindal Steel & Power and Vedanta ESL Steel, had submitted an expression of interest for Uttam Galva but after due diligence, only AM Mining India submitted a resolution plan by the extended deadline of March 19 for submission of resolution plans.”
State Bank of India had initiated bankruptcy proceedings against Uttam Galva at the Mumbai bench of the National Company Law Tribunal after it defaulted on an external commercial borrowing of USD 6.7 million in March 2020,. Six months later, the NCLT admitted SBI’s petition and appointed Mr Milind Kasodkar of law firm KMDS & Associates to oversee Uttam Galva’s affairs and conduct its bankruptcy proceedings. According to earlier media reports, Uttam Galva’s admitted claims are INR 9,742 crore, ArcelorMittal India INR 6,476 crores, AMNS Luxembourg INR 1,446 crore, PNB INR 190 crore, SBI INR 170 crore & Canara Bank INR 137 crore
Earlier, 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 INR 4,922 crore, excluding interest to secured financial lenders. With ArcelorMittal taking over majority debt, SBI had withdrawn the petition it had first filed in 2018 against Uttam Galva Steels, which was part of Reserve Bank of India’s second list of defaulters in 2017. However, during the pandemic in April 2020, Uttam Galva Steels defaulted on the balance loan of around INR 700 crore to its lenders.
Uttam Galva Steel was set up by Mr Rajinder Miglani in 1985. With 250 acres of land and more than 100 000 square metres of covered shed, the Uttam Galva Steel plant is located near Khopoli in Maharashtra. The company procures hot rolled steel and processes it into CR and further into GP and colour-coated coils. As per the firm’s website, the plant has a facility for cold-rolling HR coils with a capacity of 1 million tonnes per year, annual galvanising capability of 750,000 tonnes and 90,000 tonne per annum of colour coating
CR - Four cold rolling mills that consist of one 4-hi mill, two 6-hi mills (One Twin Stand) and one 20 Hi mill, which can handle thickness of 0.12mm to 2.5mm and a width up to 1650 mm. All these mills are supported by HR side slitters, three hi speed continuous pickling line, skin passes and stretch levelling facility.
Galvanizing - 1650mm Galvanising Line with galvanizing range from 0.12mm to 3mm thickness
Color Coating - The line has capacity to use substrate of CR, Galvanized, aluminium or stainless steel coils.