Uttam Galva Steels Limited announced that the Hon'ble NCLT has orally pronounced an order on 14 October 2022 approving the resolution plan submitted by AM Mining India Private Limited with respect to the corporate insolvency resolution process of the Uttam Galva Steels Limited under Section 31 of the Insolvency and Bankruptcy Code 2016. The total resolution amount including payout to financial creditors, operational creditors and equity infusion as per the AM Mining’s plan was Rs 4,020 crore. The payout to financial creditors is INR 3,472 crore. Of the admitted claims by financial creditors, the claims of ArcelorMittal India Private Limited stood at about INR 6,476 crore and AMNS Luxembourg Holding at INR 1,445 crore. ArcelorMittal got a toehold in the Indian market through a 32% stake in the Uttam Galva in 2009. Uttam Galva had been classified a non-performing asset for more than a year. Even though ArcelorMittal sold its stake in Uttam Galva to promoters at Rs 1 per share ahead of the Essar bid, the Supreme Court found it ineligible and exercised its extraordinary power under Article 142 of the Constitution in granting time to make payment of dues for defaulting companies. ArcelorMittal had taken bulk of Uttam Galva’s debt in 2018 to become eligible for the Essar Steel bid, which was being auctioned under the Insolvency and Bankruptcy Code
Uttam Galva Steels Limited announced that the Hon'ble NCLT has orally pronounced an order on 14 October 2022 approving the resolution plan submitted by AM Mining India Private Limited with respect to the corporate insolvency resolution process of the Uttam Galva Steels Limited under Section 31 of the Insolvency and Bankruptcy Code 2016. The total resolution amount including payout to financial creditors, operational creditors and equity infusion as per the AM Mining’s plan was Rs 4,020 crore. The payout to financial creditors is INR 3,472 crore. Of the admitted claims by financial creditors, the claims of ArcelorMittal India Private Limited stood at about INR 6,476 crore and AMNS Luxembourg Holding at INR 1,445 crore. ArcelorMittal got a toehold in the Indian market through a 32% stake in the Uttam Galva in 2009. Uttam Galva had been classified a non-performing asset for more than a year. Even though ArcelorMittal sold its stake in Uttam Galva to promoters at Rs 1 per share ahead of the Essar bid, the Supreme Court found it ineligible and exercised its extraordinary power under Article 142 of the Constitution in granting time to make payment of dues for defaulting companies. ArcelorMittal had taken bulk of Uttam Galva’s debt in 2018 to become eligible for the Essar Steel bid, which was being auctioned under the Insolvency and Bankruptcy Code
